A strong stock as of late has been Yeti (YETI). Shares have been marching higher, with the stock up 4.3% over the past month. The stock hit a new 52-week high of $52.48 in the previous session. Yeti has gained 15.6% since the start of the year compared to the -8.9% gain for the Zacks Consumer Discretionary sector and the -1.4% return for the Zacks Leisure and Recreation Products industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 14, 2026, Yeti reported EPS of $0.26 versus consensus estimate of $0.17.
For the current fiscal year, Yeti is expected to post earnings of $2.87 per share on $2.01 in revenues. This represents a 15.73% change in EPS on a 7.55% change in revenues. For the next fiscal year, the company is expected to earn $3.28 per share on $2.15 in revenues. This represents a year-over-year change of 14.29% and 6.74%, respectively.
Valuation Metrics
While Yeti has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Yeti has a Value Score of C. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 17.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 20.5X. On a trailing cash flow basis, the stock currently trades at 18X versus its peer group's average of 15.3X. Additionally, the stock has a PEG ratio of 1.37. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Yeti currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Yeti fits the bill. Thus, it seems as though Yeti shares could have potential in the weeks and months to come.
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YETI Holdings, Inc. (YETI): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).