Categories Analysis, Earnings, Other Industries

Here’s what makes Yeti Holdings’ (YETI) stock a great pick this year

Yeti Holdings (NYSE: YETI), a market leader in outdoor coolers and drinkware, achieved steady growth over the years on the back of innovation and strength of the brand. Having raised its market cap to around $2.5 billion, after going public more than a year ago, Yeti remains unchallenged despite new players entering the recreational products market.

trending stocks high volatility

Currently, Yeti is fairly valued and has a strong potential for future growth – something most investors would find attractive. Already in the first quarter of fiscal 2020, the company is focused on meeting the growth targets and predicts double-digit sales and earnings growth for the full year, which is in line with the market’s expectations.

Related: Baidu (BIDU) Q4 earnings top estimates

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.

We’re on Flipboard! Follow us to receive the latest stock market, earnings, and financial news at your fingertips

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top