YETI - growing too fast maybe?? BUT I Like the story!
Yeti Holdings was falling Friday, as Citigroup warns that the cooler maker may struggle to keep its rally going.
Analyst Wendy Nicholson downgraded Yeti (ticker: YETI) down to Neutral from previous Buy, while raising her price target to $85 from $69.
Tough to keep it going... I think...
The stock is up almost 400% from its low in March 2020, and Yeti easily notched a triple-digit gain for the year as a whole—a major rally.... possibly too fast.
Yeti now trades around 40 times 2021 earnings-per-share estimate, meaning it has one of the highest price/earnings multiples in its coverage. It does deserve some premium for its strong growth, but it maybe “limited room for multiple expansion” looking ahead, as its valuation is already at an all-time high.
BUT it really was a no brainer as with the steady climb......as it RODE THE STAY AT HOME "STAYCATION LIFESTYLE" ----outdoors---- THAT BENEFITS YETI --- for sure.
WHAT IS interesting is the approx 18 million buy on a single day Jan 20, 2021. The last time it had a similar HUGE buy in was last year near April of 2020 after the market crashed and started to pull upward. Other than that average daily volume was fairly modest and low anywhere between 700k to 3M
KEY: 50-day moving average ---- SEEMS RIGHT ON TARGET and not too far ahead of itself as a chart pattern...as it came back to down to the 50MA. since mid-January.
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Disclaimer:
These are just opinions and current thoughts, which may change. Always do your own due diligence, full research, and homework, and consult with your own licensed investment professional before any investments. Any comments and analysis seen here are personal opinions, and we are not registered or licensed in any jurisdiction whatsoever to provide any investing advice. Any analysis, charting and comments should never be used for the purposes of assisting in any advisory decisions with any stock purchase or sale, and never to be used on the basis of making any kind of investment decisions. It is for the sole purposes of opinions and thoughts of patterns seen in the markets. Thank you.
Analyst Wendy Nicholson downgraded Yeti (ticker: YETI) down to Neutral from previous Buy, while raising her price target to $85 from $69.
Tough to keep it going... I think...
The stock is up almost 400% from its low in March 2020, and Yeti easily notched a triple-digit gain for the year as a whole—a major rally.... possibly too fast.
Yeti now trades around 40 times 2021 earnings-per-share estimate, meaning it has one of the highest price/earnings multiples in its coverage. It does deserve some premium for its strong growth, but it maybe “limited room for multiple expansion” looking ahead, as its valuation is already at an all-time high.
BUT it really was a no brainer as with the steady climb......as it RODE THE STAY AT HOME "STAYCATION LIFESTYLE" ----outdoors---- THAT BENEFITS YETI --- for sure.
WHAT IS interesting is the approx 18 million buy on a single day Jan 20, 2021. The last time it had a similar HUGE buy in was last year near April of 2020 after the market crashed and started to pull upward. Other than that average daily volume was fairly modest and low anywhere between 700k to 3M
KEY: 50-day moving average ---- SEEMS RIGHT ON TARGET and not too far ahead of itself as a chart pattern...as it came back to down to the 50MA. since mid-January.
___________________________________
Disclaimer:
These are just opinions and current thoughts, which may change. Always do your own due diligence, full research, and homework, and consult with your own licensed investment professional before any investments. Any comments and analysis seen here are personal opinions, and we are not registered or licensed in any jurisdiction whatsoever to provide any investing advice. Any analysis, charting and comments should never be used for the purposes of assisting in any advisory decisions with any stock purchase or sale, and never to be used on the basis of making any kind of investment decisions. It is for the sole purposes of opinions and thoughts of patterns seen in the markets. Thank you.