Camping World's 13% December Slump: A Tactical Mispricing on Leadership Transition?

The specific event that triggered the December sell-off was the announcement on December 8 that CEO and Chairman Marcus Lemonis would step down effective January 1, 2026. December saw the recreational vehicle (RV) retailer's share price erode by 13% following that news. The market's reaction was an overreaction to the departure of a charismatic founder, creating a temporary mispricing.

The company named President Matthew Wagner as Lemonis's successor and Brent Moody as the new Board Chairman, signaling a planned, internal transition. Both new leaders are long-serving executives, with Wagner having started at Camping World in 2007 and Moody joining in 2010. Matthew Wagner, the Company's President, will succeed Marcus Lemonis as Chief Executive Officer upon his retirement. This was not a sudden, external hire but a clear succession plan. Yet, the stock fell sharply, likely because Lemonis was not just a CEO but a rock-star figure who hosted popular business reality TV shows, bringing significant free publicity and brand visibility to the company. TV stardom confers high status to individuals, and that holds doubly true for high-ranking business executives.

The subsequent 20.7% rally over the past five trading days as of early January 2026 confirms the market is reassessing the leadership risk. The initial 13% slump appears to have been an exaggerated sell-off on the news of a known transition, driven more by the loss of a public persona than by any fundamental change in the company's strategy or financial health. The recovery suggests the market is now focusing on the stability of the internal plan.

The Financial Backdrop: Strong Q3 Momentum vs. Persistent Weakness

The tactical trade hinges on this tension: the stock's deep, multi-year decline suggests fundamental deterioration, yet the company just posted record-breaking quarterly results. The numbers from Q3 2025 tell a clear story of operational strength. Adjusted EBITDA grew over 40% that quarter, driven by record new and used vehicle volume. The company also captured a record 13.5% market share, a significant improvement. This performance was not a one-off; management pointed to low double-digit year-over-year unit volume growth in October as of late October, showing momentum carried into November.

Yet the market has largely ignored this. The stock's 120-day return is down 35.1% and its rolling annual return is -44.9%. This disconnect is the core of the mispricing. The rally following the December leadership news suggests the market is now focusing on the stability of the succession plan, but the long-term pessimism reflects deeper concerns-likely about the RV industry's cyclical nature, consumer affordability pressures, and the company's high leverage. The dividend provides a modest anchor, with a yield of 4.23% and a recent declaration of $0.125 per share in December. It offers a tangible return while investors wait for the narrative to shift.

The bottom line is that strong Q3 execution provides a solid counter-narrative to the stock's pessimistic trajectory. For a tactical investor, this creates a setup where the risk of a further fundamental breakdown appears low, while the potential for a re-rating is high if the new leadership can maintain this momentum. The financials support a hold or buy, but the event-driven catalyst is the market's overdue recognition of that strength.

Valuation and the Immediate Setup: A Tactical Trade

The stock now trades at a clear discount to its recent highs, but the valuation tells a story of deep, persistent pessimism. The share price sits at $11.80, just above its 52-week low of $9.49. The forward price-to-earnings ratio of 33.6 is elevated, but this reflects the market's expectation for a near-term earnings rebound after a period of losses. More telling is the 4.23% dividend yield, which provides a tangible return while the stock trades at these depressed levels. This setup creates a clear tactical opportunity: the risk of a fundamental breakdown appears low, given the record Q3 execution, while the potential for a re-rating is high if the new leadership can maintain momentum.

The immediate catalyst is the smooth execution of the leadership transition and the new CEO's first earnings report. Matthew Wagner officially took the helm on January 1, 2026. His first major test will be the Q4 2025 earnings release, expected in late February. The market will be watching for two key signals: first, whether the company can sustain its record 13.5% market share momentum into the new year, and second, how the new leadership frames the path to outperforming the industry and reducing leverage. Any deviation from the strong Q3 trajectory would be a red flag.

Key risks to watch over the next 30-60 days are macroeconomic pressures on consumer spending and the RV sector's cyclicality. The company itself noted that affordability is still top of mind for consumers, and rising prices could create resistance. The new CEO must demonstrate a clear strategy for navigating these headwinds while leveraging the used vehicle and service segments that drove Q3 success.

The bottom line is a high-conviction, event-driven trade. The stock's 20.7% rally over the past five days shows the market is already pricing in a successful transition. For a tactical investor, the setup is to hold or add on any weakness, using the dividend yield as a buffer. The primary risk is that the new CEO fails to maintain the Q3 momentum, which would likely trigger a deeper sell-off. The reward, however, is a re-rating toward the stock's intrinsic value as the new leadership proves the succession plan was the right move.