Profitable Stocks to Watch: DXP's Growth Outpaces CWH and CDRE's Challenges

Camping World (CWH) and Cadre (CDRE) are two profitable companies facing challenges. CWH's same-store sales have declined, EPS has dipped 43.4% annually over the past five years, and its net-debt-to-EBITDA ratio is high. CDRE's expenses have increased as a percentage of revenue, EPS has been flat over the last four years, and its free cash flow margin has declined. DXP (DXPE) is a profitable stock to watch, with unique offerings, above-market sales growth, and expanded operating margin over the last five years.

The consumer and leisure sectors in 2025 present a complex landscape, with companies facing diverse challenges and opportunities. Camping World (CWH) and Cadre (CDRE) are two profitable companies that have encountered significant obstacles, while DXP Enterprises (DXPE) stands out as a promising investment.

Camping World (CWH) has experienced a decline in same-store sales, a 43.4% annual decrease in EPS over the past five years, and a high net-debt-to-EBITDA ratio. These challenges have been exacerbated by macroeconomic headwinds such as tariffs and geopolitical tensions Unlocking 2025's Hidden Gems: High-Conviction ...^[1]. Despite these issues, CWH's strategic alignment with remote work and digital nomad trends positions it as a potential long-term winner in the RV sector.

Similarly, Cadre (CDRE) has seen its expenses increase as a percentage of revenue, with EPS remaining flat over the last four years and a decline in free cash flow margin. These financial pressures highlight the need for CDRE to focus on cost optimization and strategic agility to maintain its competitive edge in the leisure sector Unlocking 2025's Hidden Gems: High-Conviction ...^[1].

In contrast, DXP Enterprises (DXPE) offers a compelling investment case. The company has achieved record sales and profitability, with EBITDA margins exceeding 11% and ROIC above 30%. DXPE's acquisition strategy and organic growth have created a diversified and resilient business model. The company's strong cash flow generation and the potential for dividend distribution in the future make it an attractive long-term investment DXP Enterprises: Record Margins, Growth Momentum, And M&A Firepower Point To More Upside^[2].

In conclusion, while Camping World and Cadre face significant challenges, their ability to adapt and innovate will be crucial to their success. DXP Enterprises, on the other hand, offers a strong financial profile and growth prospects, making it a promising investment opportunity in the consumer and leisure sectors.