Technology industry growth stocks have experienced a powerful rally over the past year. However, most of the stocks that benefited from the pandemic’s disruptions have been witnessing selling off lately…
The slowly building economic recovery is motivating investors to rotate away from the pricey “pandemic winners” into undervalued cyclical stocks. But economic the recovery is also leading to the emergence of a new set of stocks that are equipped to grow in the post-pandemic world.
Budding stocks, such as Camping World Holdings, Inc. (CWH – Get Rating), Dillard’s, Inc. (DDS – Get Rating), and Olympic Steel, Inc. (ZEUS – Get Rating), possess solid growth attributes and have the potential to deliver solid returns in the near-term. Because their industries are gradually returning to their pre-pandemic operational levels, we think these stocks have the potential to capitalize on the recovery.
Camping World Holdings, Inc. (CWH – Get Rating)
CWH is a recreational vehicle (RV) and outdoor retailer. The company operates through two segments—Good Sam Services and Plans, and RV and Outdoor Retail. In addition to offering outdoor and active sports products, it provides RV maintenance and repair services, emergency roadside assistance plans, and property and casualty insurance programs. CWH serves customers through dealerships, and online and e-commerce platforms.
On April 1,CWH acquired approximately nine acres of land off Interstate 80 in Cheyenne, Wyo., to build its first SuperCenter facility in the state. Set to open in late 2021/early 2022, the SuperCenter will include a wide range of new and used RVs from top manufacturers in addition to a full assortment of RV and outdoor products and accessories and other product portfolios.
CWH signed an agreement to acquire multi-location Hilltop RV Superstore on March 31. The company will expand its market reach in Michigan through the dealerships in Escanaba and Ishpeming. It has also signed various agreements to acquire dealerships in many states.
CWH is scheduled to release its fiscal 2021 first quarter financial results on May 4. Its total revenue increased 17.5% year-over-year to $1.13 billion for the fourth quarter, ended December 31, 2020. Its gross profit has increased 57.1% year-over-year to $378.03 million. CWH’s adjusted net income came in at $20.73 million, compared to a net loss of $13.18 million in the fourth quarter of 2019. Its adjusted EPS was $0.48, compared to a loss per share of $0.35 in the prior-year period.
A $1.86 consensus EPS estimate for the current quarter, ending June 30, 2021,represents an improvement of 14.8% year-over-year. CWH surpassed the consensus EPS estimates in each of the trailing four quarters. The $1.91 billion consensus revenue estimate for the current quarter represents a 19% gain on a year-over-year basis. The stock has gained 435.4% over the past year and closed yesterday’s trading session at $40.53.
CWH’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.
The stock has an A grade for Value and Momentum, and a B grade for Quality and Growth. We have also graded CWH for Stability and Sentiment. Click here to access all CWH’s ratings.
CWH is ranked #6 of 33 stocks in the A-rated Athletics & Recreation industry.
Click here to checkout our Retail Industry Report for 2021
Dillard’s, Inc. (DDS – Get Rating)
DDS retails fashion apparel, cosmetics, and home furnishings, and other consumer goods. The company operates through two segments—Retail Operations and Construction. Its Construction segment constructs and remodels stores through CDI Contractors, LLC.
On February 26, 2021, DDS announced a cash dividend of $0.15 per share on the company’s Class A and Class B Common Stock, payable on May 3, 2021.
On February 25, DDS, in collaboration with Atlanta-based tastemaker, Emily Hertz, launched a new limited-edition capsule collection called ‘Born on Fifth for Antonio Melani’. DDS and New York-based designer duo, Michael and Alex Toccin, have launched a new brand named
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