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Should Value Investors Buy Camping World (CWH) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Camping World (CWH - Free Report) . CWH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 20.24. This compares to its industry's average Forward P/E of 20.63. Over the past year, CWH's Forward P/E has been as high as 41.53 and as low as -46.63, with a median of 20.

Investors should also note that CWH holds a PEG ratio of 0.68. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CWH's industry has an average PEG of 0.84 right now. Within the past year, CWH's PEG has been as high as 0.77 and as low as -1.57, with a median of 0.74.

Value investors will likely look at more than just these metrics, but the above data helps show that Camping World is likely undervalued currently. And when considering the strength of its earnings outlook, CWH sticks out at as one of the market's strongest value stocks.


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