Stock Picks: Hot Performance with Coolers – Yeti Holdings Inc (YETI)

June 7, 2021, 6:02 pm EDT

Hot Performance with Coolers – Yeti Holdings Inc (YETI)

US Summer unofficially started after memorial day. After about 1.5 years with limited activities for almost all US citizens, this summer becomes more meaningful than ever. So many people cannot wait to get out for BBQ, beach, picnic, hiking, fishing, sporting, boating, finishing, etc. 

Maybe you are one of the people to begin to update your outdoor gear and equipment for the summer fun. One of the very common and necessary equipment under the sun is the coolers. 

Yeti Holdings Inc (YETI) sells high-end coolers as shown in the featured picture. Its price tag is not very cool. For example, you can spend $300 for the Yeti one as shown or $30-$50  from similar ones like Walmart or Amazon. 

Why people would spend much more money to buy coolers from Yeti? Well, coolers are not the same just like cars are not identical, though basic functionality might be the same. Just like there are luxury cars Ferrari, Tesla, there are also cars for the broad markets Toyota and Honda. High-end products need to have a quality, design, and features to justify their prices. If they can do, then it is for sure their profit margins are much higher for the target markets. Tesla (TSLA) is a good example that sold a $100K sports car at the beginning and biome the largest car markers in the world, beating Ford, GM, and others. 

Technically, YETI is about to break out again above 90 to welcome the post-COVID-19 summer. Its stock price is already up +80% since November 2020. YETI could sell more coolers for outdoor lovers if the US continues its opening and activities are getting higher. Another uptrend could start again. 

The entry point is 90 and the sell-stop is 82.5.

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