Why Camping World Stock Rallied Today

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Shares of** Camping World Holdings **(CWH +13.95%) jumped on Monday, following news of peace talks between the U.S. and Iran.

By the close of trading, Camping World’s stock price was up over 13%.

Image source: Getty Images.

Progress toward peace

As the world’s largest seller of recreational vehicles (RVs), Camping World is heavily exposed to fuel costs.

Surging gasoline and diesel prices make people think twice about ponying up for a new RV.

Higher fuel costs can also force existing RV owners to scale back on the mileage they put on their vehicles, thereby reducing demand for Camping World’s maintenance services.

Unsurprisingly, the travel stock has come under pressure as oil prices have soared amid rising tensions in the Middle East.

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NYSE: CWH

Camping World

Today’s Change

(13.95%) $0.85

Current Price

$6.99

Key Data Points

Market Cap

$389M

Day’s Range

$6.37 - $7.05

52wk Range

$5.70 - $19.64

Volume

237K

Avg Vol

2.9M

Gross Margin

27.98%

Dividend Yield

6.12%

Today, however, was a nice reprieve from the recent downturn. Oil prices pulled back sharply after President Trump said the U.S. and Iran held “productive conversations regarding a complete and total resolution of our hostilities in the Middle East.”

Camping World’s share price, in turn, rose sharply.

Diesel prices could fall further

The Trump Administration has additional plans to lower fuel costs. During an interview with CNBC, Energy Secretary Chris Wright said the U.S. would take actions to bring more diesel fuel to the market “before too long.”

Larger RVs often run on diesel, so lower fuel prices could boost Camping World’s sales.

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