YETI is a downgrade risk on the short term
It's almost summer, which means YETI coolers, coozies, and bags are about to be out in full force. Does that mean YETI Holdings, Inc. (NYSE:YETI) stock should be on your investing radar?
Yeti stock -- last seen trading at $54.16 -- hit a two-year low of $52.61 earlier this morning. YETI s down 34.6% in 2022 alone, and if the technical troubles continue, could face a shift among the brokerage bunch. Not a single analyst rates the equity a "sell," compared to eight "buy" or better ratings.
A top-line beat back in February couldn't even help Yeti stock. Nonetheless, YETI continues to produce substantial and consistent growth. Between fiscal 2021 and fiscal 2018, Yeti increased revenues and net income by 81% and 268%, respectively. YETI only experienced a set-back in 2019 after reporting a slight annual decrease on the bottom-line. Yeti is also estimated to conclude fiscal 2022 with 11.7% earnings growth and 19.6% revenue growth, as well increase earnings by 20.6% and revenues by 14.9% for fiscal 2023. In addition, the retail company holds a solid balance sheet with $312.2 million in cash and $186.4 million in total debt.
Moreover, Yeti stock trades at a forward price-earnings ratio of 21.37 and a price-sales ratio of 3.86, which is a fair valuation considering the business’ strong growth rate. However, Yeti stock’s short-term valuation could still be considered pricey by some investors and may lead to a continued sell-off. Nonetheless, YETI's long-term potential is already attractive, making its current bearish form an opportunity for a patient long-term investor to buy at an intriguing entry point.