- Shares of Yeti have crumbled nearly 30% year-to-date, following the pattern of growth stocks.
- The company got pummeled after releasing Q4 results in mid-February, particularly on margin decay and EPS guidance below consensus for FY22.
- In my view, margin pressures are due to more transitory supply-chain pressures. Over time, YETI's branding should allow it to pass on higher costs to customers.
- A recent $100 million buyback authorization will help YETI bring down its share count at a favorable price.
For further details see:
YETI: Buy This Stock While It's On Sale