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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But in contrast you can make much more than 100% if the company does well. To wit, the Camping World Holdings, Inc. (NYSE:CWH) share price has flown 117% in the last three years. How nice for those who held the stock! In more good news, the share price has risen 8.4% in thirty days. We note that Camping World Holdings reported its financial results recently; luckily, you can catch up on the latest revenue and profit numbers in our company report.
See our latest analysis for Camping World Holdings
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During three years of share price growth, Camping World Holdings moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. It might be well worthwhile taking a look at our free report on Camping World Holdings' earnings, revenue and cash flow.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Camping World Holdings the TSR over the last 3 years was 153%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
Camping World Holdings shareholders have gained 39% over twelve months (even including dividends). This isn't far from the market return of 36%. That's not at all bad, but the cherry on top is that it's an improvement on prior returns (since shareholders only made 36% yearly over the last three years). It's good to see the uptick, although the business fundamentals will need to move in the right direction if the company is to sustain the rise. It's always interesting to track share price performance over the longer term. But to understand Camping World Holdings better, we need to consider many other factors. For example, we've discovered 2 warning signs for Camping World Holdings that you should be aware of before investing here.