The bullish outlook suggests the stock might soon shift to the growth mode, creating value for shareholders. The recent pullback can be considered as a buying opportunity, given the relatively low price and the company’s strong fundamentals. Analysts overwhelmingly recommend buying Yeti, with a highly optimistic target price of about $42, which was revised up multiple times in recent weeks.
Stock Movement
After making a positive start to the year, the shares retreated and slipped to a three-month low this week, losing about 16% year-to-date. The value of the stock, which experienced high volatility since the IPO, more than doubled in 2019.
Catalysts
A closer look at last year’s performance shows growth was spurred by multiple factors, with the main catalysts being strong customer addition, product innovation and global expansion – plans are afoot to launch regional e-commerce platforms to drive online traffic, starting with Europe. Yeti is probably poised for a stronger growth this year, leveraging these positive elements combined with the company’s aggressive direct-to-customer initiatives.
Q4 Outcome
Yeti’s top-line outperformed Wall Street’s predictions consistently last year. In the final three months of the year, sales increased 23% annually, driving up adjusted earnings by a third to $0.48 per share amid improved omni-channel capabilities and solid margin growth. The fourth-quarter results also topped the Street view. Over the past decade, the rate of expansion has been phenomenal, which has left rivals trailing.