YETI (is a Zacks Rank #5 (Strong Sell) that designs, markets, retails, and distributes products for the outdoor and recreation market under the YETI brand. The company offers hard and soft coolers, drinkware products,as well as cargo, bags, outdoor living, and associated accessories. YETI Quick Quote YETI - Free Report) The stock thrived during the pandemic, but has fallen apart since late 2021. Now down over 60% from the all-time highs, the stock cannot seem to find any life. A recent earnings miss did not help and now estimates are falling, putting further pressure on the bulls. About the Company YETI is headquartered in Austin, TX. The company was founded in 2006 and employs about 1,000. YETI sells its products through independent retailers, including outdoor specialty, hardware, sporting goods, and farm and ranch supply stores, as well as through Website. The company is valued at $3.5 billion and has a Forward PE of 18. YETI holds Zacks Style Scores of “A” in Growth, but D in Value and “F” in Momentum. The stock pays no dividend. Q3 Earnings The company reported EPS in late February in which it barely missed expectations. The bottom line came in at $0.78 v the $0.79 expected, but revenues came in at $448M v the $491M expected. The revenue miss was partly due to a voluntary recall of some products due to safety concerns. The company said that $38.4M in sales was impacted due to the recalls. While direct to consumer sales increased 17%, gross margins fell from last year to 54.3% from 57.5%. Management said profitability remained strong in 2022, despite the impact of lingering supply chain costs. They added that gross margins headwinds began to ease in the fourth quarter. While there was some optimism, the company guided FY23 in a range of $2.13-2.23 v the $2.78 expected. Estimates The recalls and guide lower have forced analysts to lower estimates drastically. Over the last 60 days, estimates for the current quarter have gone from $0.32 to $0.14, a drop of 56%. For next quarter they have fallen 30%, dropping from $0.73 to $0.51. Looking ahead, analysts have dropped their numbers significantly over the last 60 days. For next year, numbers have dropped from $3.28 to $2.71, or 17%. Technical Take The stock has struggled since hitting the $108.82 highs in November of 2021. While it is trading up over 45% from last year’s lows, the stock has stalled. YETI dropped over 10% after the earnings report and has significant resistance above current trading levels. Over the last few months, the stock has made several failed attempted to cross the 200-day moving average, but is currently trading under that level at $41. If the bulls fail to get price above the $42 area soon, you could see some bulls give up. Below the post-earnings lows at $35 we could see capitulation back to the 2022 lows. Summary The recalls are not the company’s only problem, but they certainly did not help. Unfortunately, the stock likely trades sideways or bleeds lower until the fundamental picture can improve. For those interested in a similar niche company, a better option might be Acushnet ( GOLF Quick Quote GOLF - Free Report) . The stock is a Zacks Rank #2 (Buy) that is coming off a 100% EPS surprise to the upside.