What Happened?
Shares of recreational vehicle (RV) and boat retailer Camping World (NYSE:CWH) fell 4.9% in the afternoon session after Truist Securities lowered its price target on the stock to $15 from $20. While the firm maintained its Buy rating, the 25% reduction in the price target pointed to a more cautious outlook on the company's performance amid recent market trends. This adjustment followed other negative signs for the company and its industry. Previously, Moody's had downgraded Camping World's corporate family rating. The broader RV industry also faced headwinds, with shipments declining as consumer spending on discretionary items weakened.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Camping World? Access our full analysis report here.
What Is The Market Telling Us
Camping World’s shares are extremely volatile and have had 34 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 10 days ago when the stock gained 6.4% on the news that Loop Capital initiated coverage on the company with a "Buy" rating and set a price target of $17.00. The price target represented a potential upside of approximately 37% from the stock's trading price at the time of the announcement. The research firm viewed the stock's recent pullback as an attractive entry point for investors. The positive assessment from analyst Brandon Rolle provided a boost to investor confidence in the recreational vehicle retailer.
Camping World is down 42.9% since the beginning of the year, and at $11.76 per share, it is trading 53.2% below its 52-week high of $25.14 from November 2024. Investors who bought $1,000 worth of Camping World’s shares 5 years ago would now be looking at an investment worth $459.20.
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