Why Shares of Camping World Holdings Are Up Today
Shares of Camping World Holdings (NYSE: CWH) were up more than 10% late Wednesday afternoon despite an analyst downgrade and fears of deterioration in the market for recreational vehicles. Tough market conditions are priced into the stock, and investors appear more focused on signs that the COVID-19 coronavirus-related slowdown might not persist as long as once feared.
In one sense, Camping World could be viewed as a possible beneficiary of the pandemic if consumers decide to turn to camping instead of traveling on airplanes or staying in hotels. But buying an RV is a discretionary purchase, and the company's shares have been under pressure due to fears that the U.S. economy would fall into a recession and buyers would stay away. Even with Wednesday's rally, shares of Camping World have still lost half of their value year to date.
Image source: Getty Images.
Source Fool.com
