Yeti is an investable stock for these three reasons, Jim Cramer says

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 finds its footing after a brutal decline … you want to look for potential opportunities in previously expensive stocks that have suddenly become a lot cheaper,” the “Mad Money” host said. “That’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 believers investors should consider buying shares of Yeti:

  • Yeti is a strong brand that can get away with raising prices. “They put through some modest price increases earlier this year, and some analysts argue that they’ve got more room to raise pricing if cost inflation continues to be a problem,” Cramer said.
  • It’s camping season, which means good business for Yeti. “The stock tends to experience a seasonal rally in the second and third quarters as people emerge from hibernation and start doing things outdoors,” he said.
  • Yeti stock is currently cheap. “The last time Yeti was this cheap? April of 2020, before it embarked on an epic 18-month rally,” Cramer said.

Cramer also said that the outdoor products manufacturer fits his mantra of companies that make real earnings, products and value for shareholders.

When we go dumpster diving to find some rare winners for you, we want broken stocks of intact companies, not broken stocks of broken companies. In other words, the underlying business needs to be sound. … Yeti is perfectly sound,” he said.

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