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

Yeti (YETI) closed the most recent trading day at $31.56, moving -1.5% from the previous trading session. This change lagged the S&P 500's daily gain of 0.05%. At the same time, the Dow added 0.26%, and the tech-heavy Nasdaq gained 0.3%.

Heading into today, shares of the maker of outdoor and recreational products had gained 6.73% over the past month, outpacing the Consumer Discretionary sector's gain of 3.45% and the S&P 500's gain of 3.08% in that time.

Investors will be hoping for strength from YETI as it approaches its next earnings release, which is expected to be May 2, 2019.

YETI's full-year Zacks Consensus Estimates are calling for earnings of $1.04 per share and revenue of $877 million. These results would represent year-over-year changes of +14.29% and +12.6%, respectively.

Any recent changes to analyst estimates for YETI should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 currently a Zacks Rank #2 (Buy).

In terms of valuation, YETI is currently trading at a Forward P/E ratio of 30.93. For comparison, its industry has an average Forward P/E of 16.01, which means YETI is trading at a premium to the group.

It is also worth noting that YETI currently has a PEG ratio of 1.93. 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. The Leisure and Recreation Products was holding an average PEG ratio of 1.04 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 93, putting it in the top 37% 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.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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