Key Points
FMC and Camping World have fallen 61% and 56%, respectively, over the past year.
Both stocks have recently dramatically slashed their dividends.
FMC is exploring strategic alternatives, and even if things don't work out, it's still trading for less than nine times its forward earnings guidance.
There are cheap stocks out there, even in today's overextended market. You just have to be willing to overlook imperfections. It also helps if you're willing to be a contrarian, because the biggest bargains these days aren't marked down by accident.
Ready? I like FMC Corporation(NYSE: FMC) and Camping World(NYSE: CWH) as bargain stocks that could be ready for a bull run. Hear me out. Pack some patience, because these stocks have been through a world of hurt.
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1. FMC
For a company that makes pesticides, herbicides, fungicides, and other agricultural products, you wouldn't think there would be many bugs in FMC's business. Yet revenue and earnings have declined sharply for three consecutive years.
This isn't a banner time for agriculture stocks. It also doesn't help that some of FMC's signature offerings are facing patent-protection expirations and competing against low-cost generics.
FMC used to be magnetic to income investors for its chunky payouts, but its latest dividend cut in October was a yield gouger. Reducing its dividend by 86% was inevitable. Free cash flow plummeted last year, and its guidance was for even more pain in 2026. A double-digit yield was risky, but even today's 2.3% payout isn't guaranteed to continue if the company can't start growing again and pay down its $4 billion in debt.
The guidance it issued earlier this month for 2026 was rough. Analysts were holding out for almost $4 billion in revenue, but guidance calls for $3.6 billion to $3.8 billion on the top line. Its outlook for earnings per share of $1.63 to $1.89 was well short of the $2.44 the Wall Street pros were modeling at the time.
FMC stock moved 8% higher on Wednesday. It's exploring strategic alternatives. Can selling some assets help clean up its balance sheet? Will an outright sale of the company deliver investors a chunky exit? Even if it decides to stay independent, the future can be bright if it shows signs of stabilizing its decaying business. The stock has fallen to the point that it's now trading for just 8.5 times forward earnings. There seems to be more upside than downside in the near term.
2. Camping World
If you think an 86% dividend cut is rough, how about a total suspension on distributions? Camping World plummeted 17% on Wednesday. It posted a rough quarter, and, yes, it 86'd its once bountiful yield. The payout cut comes less than three years before it reduced its quarterly disbursements by 80%.
The country's leading RV retailer -- with 13% market share of the new and used vehicles market -- had a respectable year. Revenue inched higher in 2025 after back-to-back years of declines. The top line, however, did take a dip in the fourth quarter. Camping World also warned that it will have to clear out excess inventory in the first half of 2026. And it's pausing dividends to focus on bringing its debt under control.
I believe Wednesday's drop was an overreaction. Camping World remains the undisputed top dog in a cyclical industry that will eventually regain its groove. The stock's market cap surrendered more than three years of dividends in a single day, but I think Camping World will be in a much better place three years from now.
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Rick Munarriz has positions in Camping World. The Motley Fool recommends Camping World. The Motley Fool has a disclosure policy.
