5 Best Depressed Stocks To Buy Now

3. Camping World Holdings Inc. (NYSE:CWH)

Number of Hedge Fund Holders: 17

Camping World Holdings, Inc. (NYSE:CWH) and its subsidiaries retail recreational vehicles and related products and services through almost 200 stores across the US. Despite a decrease in revenue and adjusted EBITDA during Q4 2022, the company broke a record by selling 14,460 used vehicles, up 6% YoY. However, the company’s Forward P/E ratio of 7.91x is lower than the industry average of 10.18x, indicating that it is trading at a discount to its competitors.

Camping World Holdings, Inc. (NYSE:CWH) is acquiring Pan Pacific RV Center, which includes two RV dealerships located in California, and the deal is expected to close in Q2 2023. This acquisition will increase Camping World Holdings, Inc. (NYSE:CWH)’s California location count to twenty, and the new SuperCenters will offer new and used RVs from top brands, along with outdoor products and accessories and the entire portfolio of Good Sam products and services.

BMO Capital reduced Camping World Holdings, Inc. (NYSE:CWH)’s price target to $26 from $30 on February 23 but maintained a ‘Market Perform’ rating. The company’s Q4 results did not meet expectations, but the analyst noted that the company was positive about how the industry was dealing with overproduction in 2022 and excess channel inventory.

Hedge fund sentiment reflects the negative trajectory of Camping World Holdings Inc. (NYSE:CWH), held by 17 hedge funds during Q4 2022. In comparison, 22 hedge funds held stakes in Camping World Holdings in Q3 2022. Abrams Capital Management is Camping World Holdings Inc. (NYSE:CWH)’s largest shareholder, with shares worth $114.03 million.