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Bull of the Day: YETI Holdings (YETI)

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YETI Holdings (YETI - Free Report) designs and distributes consumer outdoor and recreational products under the popular YETI brand. Its line-up is made for activities like hunting, fishing, and camping, and include premium coolers, drinkware, waterproof and everyday bags, and other outdoor gear.

Q1 Earnings Recap

Back in May, YETI reported first-quarter eanrings and revenue that beat the Zacks Consensus Estimate.

Net sales increased 12% to $174 million, while EPS came in at $0.10 per share. Gross margin expanded 370 basis points.

Its direct-to-consumer net sales surged 29% to $79.6 million thanks to high demand for Drinkware and Coolers & Equipment.

Like other consumer discretionary companies, YETI has certainly been impacted by the coronavirus pandemic, but management believes the company is well-positioned to weather any economic downturn.

Looking ahead, YETI withdrew its full-year fiscal 2020 outlook due to broadly felt uncertainty regarding Covid-19.

The company also recently launched the free limited-time video streaming service Yeti+, which offers viewers videos of actual streams from locations in California, Colorado, Hawaii, Oregon, Texas, and Vancouver.

It’s certainly a literal twist on a traditional streaming service, but could find a dedicated user base if the pandemic keeps people indoors for longer.

YETI is Rallying

YETI Holdings, Inc. Price and Consensus

Since March 23, shares of YETI are up over 150% compared to the S&P 500’s 37.7% increase. Earnings estimates have been rising too, and YETI is a Zacks Rank #1 (Strong Buy) right now.

For the current fiscal year, five analysts have revised their bottom-line estimate upwards in the last 60 days, and the Zacks Consensus Estimate has moved up six cents to $1.04 per share. Earnings are expected to fall 13% compared to the prior year period, but 2021 looks strong, and earnings are expected to see double-digit year-over-year growth.

YETI has done a great job over the years at expanding its product portfolio, and their coolers and drinkware have become some of the hottest corporate gifts.

Now that the pandemic has stretched into summer, YETI will likely benefit from high demand for its equipment, as more people look to roadtrips and the great outdoors for a vacation.

If you’re an investor searching for a consumer discretionary stock to add to your portfolio, make sure to keep YETI on your shortlist.

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YETI Holdings, Inc. (YETI) - free report >>