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Yeti (YETI) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

In the latest trading session, Yeti (YETI) closed at $32.16, marking a +0.41% move from the previous day. This change outpaced the S&P 500's 0.36% gain on the day. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 0.27%.

Coming into today, shares of the maker of outdoor and recreational products had gained 13.22% in the past month. In that same time, the Consumer Discretionary sector gained 2.92%, while the S&P 500 gained 3.98%.

Investors will be hoping for strength from YETI as it approaches its next earnings release, which is expected to be August 1, 2019.

For the full year, our Zacks Consensus Estimates are projecting earnings of $1.07 per share and revenue of $878.94 million, which would represent changes of +17.58% and +12.85%, respectively, from the prior year.

Any recent changes to analyst estimates for YETI should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. YETI is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, YETI is currently trading at a Forward P/E ratio of 30. Its industry sports an average Forward P/E of 15.95, so we one might conclude that YETI is trading at a premium comparatively.

We can also see that YETI currently has a PEG ratio of 1.76. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Leisure and Recreation Products stocks are, on average, holding a PEG ratio of 1 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 97, which puts it in the top 38% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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