The great outdoors is more than an excellent John Candy film.
It’s a place where we set aside the bustle of daily life to reconnect with nature.
Yeti (YETI) capitalized on this trend.
They do more than just create quality tumblers to hold our coffee.
Brand ambassadors build a lifestyle.
In our TrackstarIQ Data, several of these stocks continue to see high search volume.
So we scoured through the data to bring you some of the best of the best out there.
Yeti’s products fall into three categories:
- Coolers & equipment
You would think it would be difficult to grow a business built on such limited offerings.
Yet, the company boasts revenue growth of 19.48% in 2020 and 26.27% in the latest quarter.
Total sales eclipsed $1 billion for the first time in 2020.
And they maintain incredible gross margins of over 50%!
What’s more, every year since they reported, Yeti delivered positive earnings.
That’s an incredible feat all things considered.
Shares currently trade at a 50x price-to-earnings ratio (P/E). While that’s not cheap, they grew earnings by over 200% in the last year. Plus, analysts peg their forward earnings somewhere around $2.55.
Camping World Holdings (CWH)
If you ever watched the CNBC series The Profit, then you know of Marcus Lemonis.
The serial entrepreneur and investor currently runs Camping World Holdings, the recreational vehicle company, and does a darn good job.
Similar to Yeti, Camping World saw double-digit growth in 2020 with an 11.34% increase in revenues year over year.
And 2021 started with a surge of over 51% compared to Q1 from the prior year!
Gross margins remain steady and healthy around 30%.
On the other hand, operating margins have tended to fluctuate from as low as 1.8% in 2019 to 9.1% in 2020.
Still, the company continues to turn out positive earnings with a 0.7% dividend payout.
With a P/E ratio of 10x, this might be one of the cheapest stocks out there.
However, investors remain cautious that the company can maintain margins and sales next year. Like many businesses out there, Camping World faces an uncertain supply chain.
Right now, the estimates for this quarter range from $0.65 – $2.07 with consensus around $1.54.
Even if earnings were to come in at 1/3rd their current level, that would put the company in-line with the S&P 500.
Our hot take
Both of these companies are well-managed and positioned to capitalize on our love of the outdoors.
Do yourself a favor and take a look through their websites and learn more about the companies.