Shares of Camping World Holdings (NYSE: CWH) -- a leading outdoor and camping retailer offering recreational vehicles (RVs), camping gear, and RV maintenance and repair, among other products and services -- were up 12% on Friday despite a lack of direct company news. Here's what could be going on.
One possible driving force behind today's 12% gain could simply be continued momentum from a couple of announcements that have helped the stock rebound 40% this early into 2019. Those announcements include an executive shake-up that management hopes will heighten the team's focus on inventory management, expense control, product margins, and cash flow.
More recently, Camping World announced it has continued to expand with the acquisition of Coates RV, which helps grow the company's footprint in Minnesota.
But investors should remember that these announcements and the 40% gain year to date are still dwarfed by the stock's decline over the past 12 months.
It's also possible (and this is speculation) that something could be going on behind the scenes that we'll receive details on over the next week or two. Investors witnessed a similar scenario when Camping World stock dipped on Dec. 21, 2018, with no direct news, and it wasn't until Dec. 31 that Camping World filed an 8-K notification with the Securities and Exchange Commission noting that Roger Nuttall had departed as president 10 days prior .
Investors would be wise not to speculate, or worry about speculation similar to the above paragraph, because stocks will always go up and down for reasons out of our control. What's important is simple: Keep your long-term investment thesis in focus, and make sure the company is taking steps toward executing on that thesis. Currently, Camping World needs to improve its expenses, margins, and cash flow while efficiently expanding in the hope that a broader turnaround in RV trends leaves the company in a much improved financial scenario over the next few years.
10 stocks we like better than Camping World Holdings
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Camping World Holdings wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of November 14, 2018
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.