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Yeti (YETI) Gains As Market Dips: What You Should Know

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Zacks Equity Research
·3 min read
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Yeti (YETI) closed at $51.29 in the latest trading session, marking a +0.12% move from the prior day. This move outpaced the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.35%, while the tech-heavy Nasdaq lost 0.28%.

Prior to today's trading, shares of the maker of outdoor and recreational products had gained 8.91% over the past month. This has outpaced the Consumer Discretionary sector's gain of 1.59% and the S&P 500's gain of 3.82% in that time.

YETI will be looking to display strength as it nears its next earnings release, which is expected to be November 5, 2020. On that day, YETI is projected to report earnings of $0.37 per share, which would represent year-over-year growth of 23.33%. Our most recent consensus estimate is calling for quarterly revenue of $264.73 million, up 15.54% from the year-ago period.

YETI's full-year Zacks Consensus Estimates are calling for earnings of $1.44 per share and revenue of $1.03 billion. These results would represent year-over-year changes of +20% and +12.25%, respectively.

Any recent changes to analyst estimates for YETI should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.27% higher. YETI currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, YETI currently has a Forward P/E ratio of 35.6. Its industry sports an average Forward P/E of 16.38, so we one might conclude that YETI is trading at a premium comparatively.

Meanwhile, YETI's PEG ratio is currently 2.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Leisure and Recreation Products stocks are, on average, holding a PEG ratio of 2.5 based on yesterday's closing prices.

The Leisure and Recreation Products industry is part of the Consumer Discretionary sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. 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 Zacks.com.

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