Shares of outdoor-goods retailer Yeti (NYSE: YETI) have declined this year, even as the S&P 500 has risen about 4%. In total, as of market close on Monday, Yeti stock has fallen nearly 6% year to date. A large portion of this decline has been driven by one primary factor: voluntary product recalls. But is the recall-driven sell-off a buying opportunity? After all, this issue should prove to be only temporary.
Here's a look at both what's weighing on Yeti stock and why Wall Street may be overreacting to some recent bad news.
New first broke of Yeti's planned voluntary recalls in a filing with the U.S. Securities and Exchange Commission (SEC) on Feb. 6. The retailer determined there was "a potential safety concern" regarding the magnet-lined closures of some of its products.
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Yeti Stock Is Down This Year: Is This a Buying Opportunity?