Investors should consider investing in Yeti Holdings now because the stock is much more affordable than usual, CNBC’s Jim Cramer said Tuesday.
“When the market regains its footing after a brutal decline…you want to look for potential opportunities in formerly expensive stocks that have suddenly gotten a lot cheaper,” the Mad Money host said. “This is Yeti Holdings.”
Yeti shares rose 7.37% to $61.30 on Tuesday, still down from their 52-week high of $108.82.
Here are three other reasons Cramer thinks investors should consider buying Yeti stock:
- Yeti is a strong brand that can get away with price hikes. “They made some modest price increases earlier this year, and some analysts argue that if cost inflation remains an issue, they have more room to raise prices,” Cramer said.
- It’s camping season, which means good business for Yeti. “The stock tends to have a seasonal rally in the second and third quarters as people wake up from hibernation and start doing things outdoors,” he said.
- Yeti stocks are cheap right now. “The last time Yeti was this cheap? April 2020 before embarking on an epic eighteen month rally,” said Cramer.
Cramer also said the outdoor products maker aligns with its mantra of companies that create real profits, product and value for shareholders.
“When we go looking for rare winners, we want broken stocks in sound companies, not broken stocks in broken companies. In other words, the underlying business must be solid. … Yeti is perfectly healthy,” he said.
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