Back to top

Image: Bigstock

Yeti (YETI) Gains As Market Dips: What You Should Know

Read MoreHide Full Article

In the latest trading session, Yeti (YETI - Free Report) closed at $72.37, marking a +0.56% move from the previous day. This move outpaced the S&P 500's daily loss of 0.35%. At the same time, the Dow lost 0.41%, and the tech-heavy Nasdaq lost 0.07%.

Coming into today, shares of the maker of outdoor and recreational products had gained 19.49% in the past month. In that same time, the Consumer Discretionary sector gained 8.76%, while the S&P 500 gained 3.21%.

YETI will be looking to display strength as it nears its next earnings release. In that report, analysts expect YETI to post earnings of $0.61 per share. This would mark year-over-year growth of 27.08%. Our most recent consensus estimate is calling for quarterly revenue of $346.57 million, up 16.46% from the year-ago period.

YETI's full-year Zacks Consensus Estimates are calling for earnings of $1.74 per share and revenue of $1.06 billion. These results would represent year-over-year changes of +45% and +15.75%, respectively.

Any recent changes to analyst estimates for YETI should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. YETI is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note YETI's current valuation metrics, including its Forward P/E ratio of 41.34. This valuation marks a premium compared to its industry's average Forward P/E of 13.98.

It is also worth noting that YETI currently has a PEG ratio of 2.26. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Leisure and Recreation Products stocks are, on average, holding a PEG ratio of 2.26 based on yesterday's closing prices.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow YETI in the coming trading sessions, be sure to utilize Zacks.com.


In-Depth Zacks Research for the Tickers Above


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


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

Published in