What Happened?
Shares of outdoor lifestyle products brand (NYSE:YETI) jumped 3% in the afternoon session after a key retail partner, Academy Sports and Outdoors, reported strong third-quarter earnings, signaling healthy consumer demand in the outdoor and sporting goods sector. Academy Sports and Outdoors, which sells YETI products, announced that its earnings for the third quarter came in ahead of analyst targets. The retailer's revenue grew 3% compared to the same period in the previous year, and its earnings per share also beat expectations. The strong performance from a major retailer in the same space suggested that consumers were still spending on outdoor gear, which investors viewed as a positive sign for YETI's own sales prospects.
After the initial pop the shares cooled down to $44.73, up 3% from previous close.
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What Is The Market Telling Us
YETI’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 16 days ago when the stock gained 2.8% on the news that renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday. The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
YETI is up 19.2% since the beginning of the year, and at $44.73 per share, it is trading close to its 52-week high of $44.80 from December 2024. Investors who bought $1,000 worth of YETI’s shares 5 years ago would now be looking at an investment worth $627.56.
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