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

Zacks Equity Research

Yeti (YETI) closed the most recent trading day at $36.39, moving +0.36% from the previous trading session. This move lagged the S&P 500's daily gain of 0.47%. Elsewhere, the Dow lost 0.29%, while the tech-heavy Nasdaq added 0.85%.

Prior to today's trading, shares of the maker of outdoor and recreational products had gained 31.33% over the past month. This has outpaced the Consumer Discretionary sector's loss of 0.32% and the S&P 500's gain of 2.08% in that time.

Wall Street will be looking for positivity from YETI as it approaches its next earnings report date. This is expected to be August 1, 2019.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.07 per share and revenue of $878.94 million. These totals would mark changes of +17.58% and +12.85%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for YETI. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. YETI is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, YETI is holding a Forward P/E ratio of 33.97. This valuation marks a premium compared to its industry's average Forward P/E of 15.83.

Investors should also note that YETI has a PEG ratio of 2 right now. 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 was holding an average PEG ratio of 1.28 at yesterday's closing price.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 183, putting it in the bottom 29% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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