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Bear of the Day: YETI (YETI)

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The Peter Lynch philosophy of “Buy what you know” is something I tell people all the time. What it means is, when you want to invest, you should invest in companies that make the products or deliver the services you use every day. From a psychological point, it can help you stay invested and interested in companies.

However, sometimes those companies that you know and love are not rocking and rolling the way they used to. Sometimes, there’s an underlying shift in the core business that you may not be aware of. One way to uncover these shifts is by looking at earnings trends. That’s something we do every day here at Zacks so you don’t have to do any of the heavy lifting.

Today’s Bear of the Day is a company that has seen revisions move in the wrong direction. I’m talking about Zacks Rank #5 (Strong Sell) YETI Holdings ((YETI - Free Report) ). YETI Holdings, Inc. designs, retails, and distributes products for the outdoor and recreation market under the YETI brand. It offers coolers and equipment, including hard and soft coolers, cargo, bags, outdoor living, and associated accessories, as well as backpacks, duffel bags, luggage, packing cubes, carryalls, camp chairs, blankets, dog beds, dog bowls, and gear cases under the LoadOut, Panga, Crossroads, Camino, Hondo Base, Trailhead, Lowlands, Boomer, and SideKick Dry brands.

The reason for the unfavorable rank is that earnings estimates have come down all over Wall Street. Over the last thirty days, nine analysts have cut their estimates for the current year while five have followed suit for next year. The bearish move has dropped our Zacks Consensus Estimate form $2.71 to $2.49 for the current year while next year’s number is off from $3.08 to $2.79.

Zacks Investment Research
Image Source: Zacks Investment Research

The Leisure and Recreation Products industry ranks in the Bottom 21% of our Zacks Industry Rank. There are other companies within this industry which are in the good graces of our Zacks Rank. These include Zacks Rank #2 (Buy) Acushnet ((GOLF - Free Report) ) and On Holding ((ONON - Free Report) ).

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Acushnet (GOLF) - free report >>

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

On Holding AG (ONON) - free report >>

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