Piper Sandler’s Top Technical Stock Picks: 20 Best Stocks

16. YETI Holdings, Inc. (NYSE:YETI)

Number of Hedge Fund Holders In Q2 2024: 31

YETI Holdings, Inc. (NYSE:YETI) is a consumer cyclical goods company that makes and sells products that are used in outdoor activities. Some of the items that it sells include bags, coolers, hats, and associated items. This means that the firm’s products are relatively undifferentiated, and it opens up a wide market for competitors. YETI Holdings, Inc. (NYSE:YETI)’s troubles are exacerbated by the fact that Chinese firms are able to provide similar products at lower costs. Consequently, since volumes are key for retailers as they help beef up margins, the firm can face trouble in the future if its market remains saturated. In a July note, Piper Sandler kept an Overweight rating on YETI Holdings, Inc. (NYSE:YETI)’s shares and a $54 share price target based on optimism surrounding the earnings results due in August. After these results, the firm’s stock soared by 16.5%. This was due to a well rounded set of results which saw YETI Holdings, Inc. (NYSE:YETI)’s revenue and EPS of $463.5 million and $0.70 beat analyst estimates of $452.4 million and $0.64. This helped assuage market concerns about saturation eating YETI Holdings, Inc. (NYSE:YETI)’s market share, and the cherry on top came in the form of margin improvement by 2.8 percentage points annually to 57.7%.

Diamond Hill Capital mentioned YETI Holdings, Inc. (NYSE:YETI) in its Q1 2024 investor letter. Here is what the fund said:

“YETI Holdings (Yeti) designs and sells outdoor and recreational products. We initiated a short position in Q1 as we believe the company faces a combination of existing market saturation and intensifying competition from companies like Stanley and Hydro Flask. We also believe a 2023 product recall obscured a broader demand deceleration for Yeti’s products.”