After starting the day in the green, shares of Camping World Holdings (NYSE: CWH) turned lower to trade down 11.4% as of 3 p.m. EST Friday despite a lack of company-specific news.
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There were no new press releases, SEC filings, or negative developments concerning the RV retailer that might otherwise merit such a decline. More than anything, it appears the drop is a consequence of combining the broader market's decline today with generally bearish sentiment surrounding Camping World.
For perspective, shares of Camping World initially plunged in response to its weaker-than-expected third-quarter results early last month. In that report, Camping World CEO Marcus Lemonis noted the company was facing "a time of excess channel inventory, rising input costs, rising interest rates, volatility in the stock market, and uncertainty around the broader economy." As such, Camping World moved during the quarter to "aggressively" manage RV inventory levels, pricing, and overhead costs.
It likely doesn't help that earlier this week, the Federal Reserve opted to raise interest rates for the fourth time this year -- a move that spurred the recent market sell-off and could put even greater pressure on Camping World's business.
If that weren't enough, at least two Wall Street analysts stepped out earlier this week with words of caution on Camping World. Northcoast analyst Seth Woolf, for one, reiterated his "buy" rating on the stock Tuesday, but warned it may not meet its own financial guidance in the coming quarters. Woolf cited a recent RV dealer survey that showed promotions have intensified and "indicates a deterioration of virtually every metric" he watches.
Also on Tuesday, Wells Fargo's Timothy Conder reiterated his own "outperform" rating but reduced his price target on Camping world by $6 to $22 per share. Conder similarly pointed to a potential economic slowdown that will hurt the broader powersports industry.
To be clear, this is all technically old-ish news that shouldn't have a material effect on Wall Street's view of Camping World stock today. But when the markets fall hard, the selling pressure is undeniably greater for companies that are enduring uncertainty within the investor community.
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