YETI Holdings, Inc. (NYSE:YETI) shareholders should be happy to see the share price up 25% in the last month. But that's not enough to compensate for the decline over the last twelve months. Specifically, the stock price slipped by 58% in that time. The share price recovery is not so impressive when you consider the fall. You could argue that the sell-off was too severe.
If the past week is anything to go by, investor sentiment for YETI Holdings isn't positive, so let's see if there's a mismatch between fundamentals and the share price.
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Unfortunately YETI Holdings reported an EPS drop of 5.4% for the last year. This reduction in EPS is not as bad as the 58% share price fall. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
It is of course excellent to see how YETI Holdings has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling YETI Holdings stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
The last twelve months weren't great for YETI Holdings shares, which performed worse than the market, costing holders 58%. Meanwhile, the broader market slid about 17%, likely weighing on the stock. Fortunately the longer term story is brighter, with total returns averaging about 9% per year over three years. Sometimes when a good quality long term winner has a weak period, it's turns out to be an opportunity, but you really need to be sure that the quality is there. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for YETI Holdings (1 makes us a bit uncomfortable!) that you should be aware of before investing here.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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