YETI Holdings: Undervalued Stock Currently Trading At Multiyear Lows

Thomas Shields
237 Followers

Summary

  • YETI Holdings, Inc. is an iconic premium brand with solid fundamentals, presenting a value opportunity for double-digit returns over the next few years.
  • Recent earnings beat, with strong growth in sales and margins, supported by strategic collaborations and a robust holiday season outlook.
  • YETI's valuation metrics indicate significant discounting, with high gross margins and a strong share buyback program enhancing shareholder value.
  • Key risks include geopolitical issues affecting supply chains and inconsistent returns on investments, but strategic moves outside China and buybacks should mitigate these concerns.

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Investment Thesis

YETI Holdings, Inc. (NYSE:YETI) is an iconic higher-end brand that focuses on delivering premium products at premium prices. Based on fundamental value criteria that I use to screen for good companies falling within a range of

This article was written by

237 Followers
I've been investing for over 7 years with a focus on long term wealth creation through value growth investing, value investing, and dividend investing. I'm not a financial advisor or financial planner. I do not have a formal background in finance, I have a B.S. in Biology with a concentration in molecular cell biology. However, I am an avid reader, studier, and learner and have applied my rigorous undergraduate studies and research to investing. I plan to write articles on companies through the lens of fundamental value investing and attempt to find great companies at fair prices. All articles or comments are based on my personal experience, my own research, books/articles I've read, or general ideas about building long term wealth.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of YETI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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