COOK - Traeger: Buying After This Plunge Could Offer Strong Upside
2025-05-26 08:34:09 ET
Summary
- Traeger is a high-risk, high-reward turnaround play, now trading at deep value after a 55% share price drop due to tariff and economic uncertainty.
- Despite modest revenue declines, profitability metrics have improved, with better margins and cost controls offsetting lower average selling prices.
- Management is actively mitigating tariff exposure by shifting production, raising prices, and streamlining operations, but near-term volatility remains high.
- For risk-tolerant investors, Traeger offers significant upside if stability returns, justifying a speculative 'buy' rating at current low multiples.
Times of tremendous economic uncertainty can lead to some of the best returns in the market. But of course, investors would be wise to evaluate opportunities on a case-by-case basis. One example of a company that I now think is worth considering for investors who don't mind some risk is Traeger ( COOK ) , a rather small firm that produces and sells grills, cooking appliances, and consumables associated with those types of devices. Back in late November of last year, I decided to reaffirm the company as a ‘hold’ candidate. I had noticed that the fundamental picture for the business was improving, with revenue and cash flow figures getting better year over year. Shares were decently priced, but not cheap enough to justify a bullish assessment, considering that this was still an early-stage turn around candidate....
Traeger: Buying After This Plunge Could Offer Strong Upside