Company Overview
Zacks Rank #5 (Strong Sell) stock Yeti Holdings (YETI) is a producer focused on high-end products temperature regulation products such as stainless-steel drinkware, ice chests, coolers, and similar accessories. The company’s products are built to endure rugged outdoor conditions and are prevalent in the fishing, hunting, and camping communities. Yeti products rose to prominence when the marketplace began to understand and appreciate how long the company’s products have been able to keep contents cold or warm.
Competition is Heating Up
From 2018 to 2021, Yeti products caught fire and led to an earnings growth spurt. Annual earnings per share (EPS) grew 221% in 2018, 18% in 2019, 76% in 2020, and 39% in 2021. However, though Yeti products are very popular with enjoy a loyal following, they can be replicated by the competition and are not 100% unique in the marketplace.
For example, Stanley is a company that sells a similar product to Yeti’s temperature-regulating drinkware. Though the company is more than a century old, Stanley’s water tumbler is trending on the social media platform TikTok. The Stanley cup (not the hockey one) was introduced nearly a decade ago but has garnered a cult-like following by ditching old marketing concepts and utilizing TikTok influencers to spread the word. Like Yeti’s product line, Stanley cups can keep drinks hot or cold for several hours.
Relative Weakness
Yeti’s souring fundamental picture is leading to weakness in the shares. Not only are YETI shares negative year-to-date, but they are also underperforming industry peers over the past six months. Clearly, YETI is a laggard, and if there is one lesson I have learned over the years, it’s that weakness tends to beget weakness on Wall Street.
Wall Street is Souring on the Stock
Recent analyst revisions are one of the best ways to predict a stock’s next move and are an integral part of our Zacks Ranking system. A whopping 10 analysts tracked by Zacks revised YETI EPS estimates lower over the past 60 days.
Bear Flag Pattern
YETI shares were slammed lower in February and have now rebounded in a slow, weak rally to the descending 50-day moving average, setting up a classic bear flag pattern.
Bottom Line
Souring fundamentals, increased competition, and relative weakness are valid reasons to avoid YETI shares.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Company Overview
Zacks Rank #5 (Strong Sell) stock Yeti Holdings (YETI) is a producer focused on high-end products temperature regulation products such as stainless-steel drinkware, ice chests, coolers, and similar accessories. The company’s products are built to endure rugged outdoor conditions and are prevalent in the fishing, hunting, and camping communities. Yeti products rose to prominence when the marketplace began to understand and appreciate how long the company’s products have been able to keep contents cold or warm.
Competition is Heating Up
From 2018 to 2021, Yeti products caught fire and led to an earnings growth spurt. Annual earnings per share (EPS) grew 221% in 2018, 18% in 2019, 76% in 2020, and 39% in 2021. However, though Yeti products are very popular with enjoy a loyal following, they can be replicated by the competition and are not 100% unique in the marketplace.
For example, Stanley is a company that sells a similar product to Yeti’s temperature-regulating drinkware. Though the company is more than a century old, Stanley’s water tumbler is trending on the social media platform TikTok. The Stanley cup (not the hockey one) was introduced nearly a decade ago but has garnered a cult-like following by ditching old marketing concepts and utilizing TikTok influencers to spread the word. Like Yeti’s product line, Stanley cups can keep drinks hot or cold for several hours.
Relative Weakness
Yeti’s souring fundamental picture is leading to weakness in the shares. Not only are YETI shares negative year-to-date, but they are also underperforming industry peers over the past six months. Clearly, YETI is a laggard, and if there is one lesson I have learned over the years, it’s that weakness tends to beget weakness on Wall Street.
Wall Street is Souring on the Stock
Recent analyst revisions are one of the best ways to predict a stock’s next move and are an integral part of our Zacks Ranking system. A whopping 10 analysts tracked by Zacks revised YETI EPS estimates lower over the past 60 days.
Bear Flag Pattern
YETI shares were slammed lower in February and have now rebounded in a slow, weak rally to the descending 50-day moving average, setting up a classic bear flag pattern.
Bottom Line
Souring fundamentals, increased competition, and relative weakness are valid reasons to avoid YETI shares.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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