Investors should consider investing in Yeti Holdings now that the stock is much more affordable than it usually is, CNBC’s Jim Cramer said Tuesday.
“When the market bounces back after a sharp drop…you want to look for potential opportunities in previously expensive stocks that have suddenly become much cheaper,” the ‘Mad Money’ host said. “It’s Yeti Holdings.”
Yeti stock rose 7.37% on Tuesday to $61.30, still below its 52-week high of $108.82.
Here are three more reasons Cramer-loving investors should consider buying shares of Yeti:
- Yeti is a strong brand that can get away with raising prices. “They made modest price increases earlier this year and some analysts say they have more room to raise prices if cost inflation continues to be an issue,” 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 come out of hibernation and start doing things outdoors,” he said.
- Yeti’s stock is currently cheap. “The last time Yeti was this cheap? In April 2020, before it embarked on an epic eighteen-month rally,” Cramer said.
Cramer also said the outdoor products maker fits its mantra of companies that drive real profits, revenue and shareholder value.
“When we go digging in the trash to find rare winners for you, we want broken stocks from intact companies, not broken stocks from broken companies. In other words, the underlying business must be strong. … Yeti is perfectly healthy,” he said.
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