The IPO You Ignored Last Year is Now an Immediate “Buy”
We just witnessed the strongest trigger catalyst a newly-public company could ask for.
Initial public offerings are always exciting for investors because they bring new, rapidly-growing companies to the market and offer the chance to get in on the ground floor. Click Here..
Today, I’m here to tell you that the IPO you need to buy already happened last October. Thanks to the news last week, the time to buy is now.
Here’s the lowdown….
Channeling the successful – and gritty – marketing concept made popular by the Marlboro Man, YETI Holdings (YETI – NYSE) has brilliantly carved out a powerful niche in the outdoor supply market.
The Austin-based maker of high-end coolers, cups and other outdoor products realized that your Dad’s old, dirty Igloo cooler gathering dust in the back of the garage was broken and ineffective.
So it launched a line of $400-$600 coolers that keep ice cold for three days and marketed it to tailgaters, backyard drinkers, and wealthy outdoor enthusiasts. Amazingly, consumers have responded by embracing everything that’s labeled with the YETI name.
Case in point, YETI just released Q4 results that beat just about every Wall Street expectation. First off, the company reported a 19% sales increase to $241.2 million – compared with $202.1 million for the same period in 2017.
Secondly, it reported net income that shot up an astounding 533% (no, that’s NOT a typo) to $25.2 million – while adjusted net income for the fourth quarter came in at $0.38, beating the FactSet consensus of $0.35.
For all of 2018, YETI brought in revenue of $778.8 million, which represented a 22% increase year-over-year.
Oh, and just to top it off, YETI increased its 2019 sales growth forecast from 11.5% to 13%, which is something investors absolutely love to see.
On this news, shares of YETI powered higher – moving up over 17% to close at $21.90, which was (at the time) its highest share price ever. As you know, stocks that hit new highs continue to hit new highs – which is why I like YETI right now.
Because YETI is still in its infancy, a high-volume breakout typically means there’s a lot more room to go.
Can YETI keep the momentum going? According to President and CEO Matt Reintjes, that answer is yes. He said, “looking ahead, we’ll continue to find places where the YETI brand belongs and where we can change the nature of a consumer’s engagement with a product. As an innovator, that mindset is incredibly important to us. That’s what keeps us authentic and what keeps our customers excited to come back for more.”
To back up his talk, he recently hired Tom Shaw, who is now YETI’s vice president of investor relations. He previously held the same role at Starbucks – which is known for exploring and discovering new customer markets.
Action Plan: Add it all up, and YETI is worth buying on any pullbacks. For specific real-time entry and exit advice, join the YETI discussion in The War Room when it launches!
Yours in Smart Speculation,