YETI Holdings (YETI) Fell Amid Competition Threats

Wasatch Global Investors, an asset management company, released its “Wasatch Small Cap Growth Strategy” first-quarter 2024 investor letter. A copy of the letter can be downloaded here. During the first quarter, the strategy gained but underperformed the benchmark, the Russell 2000 Growth Index which rose 7.58%. The broader Russell 2000 Index increased 5.18% during the same period. Holdings in health care and consumer staples—and lack of exposure in materials, utilities, and communication services- contributed to the relative performance of the strategy, while holdings in information technology, consumer discretionary, and industrials detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.

Wasatch Small Cap Growth Strategy highlighted stocks like YETI Holdings, Inc. (NYSE:YETI), in the first quarter 2024 investor letter. YETI Holdings, Inc. (NYSE:YETI) distributes products for the outdoor and recreation market. The one-month return of YETI Holdings, Inc. (NYSE:YETI) was 3.82%, and its shares gained 15.27% of their value over the last 52 weeks. On June 10, 2024, YETI Holdings, Inc. (NYSE:YETI) stock closed at $42.64 per share with a market capitalization of $3.635 billion.

Wasatch Small Cap Growth Strategy stated the following regarding YETI Holdings, Inc. (NYSE:YETI) in its first quarter 2024 investor letter:

"The greatest detractor from strategy performance during the first quarter was YETI Holdings, Inc. (NYSE:YETI), which designs, markets and distributes drinkware, coolers, and other outdoor and recreational gear. Although YETI’s drinkware segment has performed reasonably well and its rollout of YETI-branded stores has shown promise, strong competitive threats have recently emerged in the drinkware space. So while YETI’s stock price is attractive, we’re maintaining a small position as we weigh whether the company can offset its slowing U.S. growth by successfully expanding internationally."

A family enjoying a camping trip, with the company's coolers, cargo bags, and other outdoor lifestyle products in the frame.

YETI Holdings, Inc. (NYSE:YETI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held YETI Holdings, Inc. (NYSE:YETI) at the end of the first quarter which was 19 in the previous quarter. The first quarter revenue of YETI Holdings, Inc. (NYSE:YETI) increased 13% to $341 million. While we acknowledge the potential of YETI Holdings, Inc. (NYSE:YETI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed YETI Holdings, Inc. (NYSE:YETI) and shared the list of best RV and camping stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.