Back to top

Image: Bigstock

Yeti (YETI) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Yeti (YETI - Free Report) closed the most recent trading day at $73.09, moving +0.27% from the previous trading session. This move lagged the S&P 500's daily gain of 0.35%. Meanwhile, the Dow gained 0.23%, and the Nasdaq, a tech-heavy index, added 0.26%.

Prior to today's trading, shares of the maker of outdoor and recreational products had gained 14.64% over the past month. This has outpaced the Consumer Discretionary sector's gain of 6.83% and the S&P 500's gain of 3.27% in that time.

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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.74 per share and revenue of $1.06 billion. These totals would mark changes of +45% and +15.75%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for YETI. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, YETI is currently trading at a Forward P/E ratio of 41.86. This valuation marks a premium compared to its industry's average Forward P/E of 14.65.

Meanwhile, YETI's PEG ratio is currently 2.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Leisure and Recreation Products industry currently had an average PEG ratio of 2.29 as of yesterday's close.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% 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

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