One Surging Stock’s Dip Offers a Great Buying Opportunity
After a long run up, we’re getting buys signals on one of the market’s top performing companies.
One of this month’s hottest stocks is a company that specializes in keeping things cold.
Yeti Holdings, Inc. (YETI) makes a wide range of outdoor leisure products, but is best known for its high-quality coolers and insulated beverage containers.
And with the summer months nearly upon us, things are starting to heat up for this stock.
Since late March, YETI stock has been on a tear, gaining as much as 33% before falling shortly after yesterday’s open.
As folks across the northern hemisphere begin to plan their summer excursions, Yeti sales are poised to do extremely well in the coming months – and investors seem to have seen the writing on the wall.
But despite the seasonal boon, YETI lost over 6.6% of its value during the worst of the dip in yesterday’s trading.
I can’t help but see a big buying opportunity here.
Where’s the money?
Since it’s IPO in October 2018, YETI has experienced a meteoric rise – nearly quadrupling its value.
The gains really began to pick up speed for Yeti in 2020, when sales were boosted by the pandemic. Outdoor gatherings became more widespread as COVID-19 prevented folks from safely gathering indoors. And the companies supplying the necessary gear benefitted greatly.
But after yesterday’s drop, traders are understandably wondering if YETI is is in the early stages of a correction.
In my opinion, the current dip YETI is experiencing is a great buying opportunity.
How do I get some?
As we’ve discussed, YETI has had a tremendous run up.
But when a stock gets overbought, it must pullback to find new buyers.
The Relative Strength (RS) – a measure of how well a stock has performed vs. the rest of the market – of YETI stock recently exceeded 90, signaling it was overbought.
Often, much of a dip like the one we began to see yesterday can be attributed to profit taking after a long period of growth. It is not necessarily an indication that the stock is overvalued.
I think that YETI, which has had huge growth year over year is a buy on any pullback as we head into the summer months.
Super Options Already Delivered a Huge Profit on YETI
Using the power of the Super Options Tracker, I was able to predict the enormous spike in YETI stock in March before it happened.
On February 26, I sent detailed instructions on the exact option to but to Super Options subscribers.
Well, last week I advised my subscribers to sell their position. All told, that one trade on YETI gave my subscribers the chance to cash in more than 115% in profits!
And with YETI’s recent dip, I’m adding it back to the list of stocks I’m targeting for even more huge gains in future recommendations.
Want to see how I do it? Click here to get all the details.
In the Spotlight: Troubling Signs for the Defense Industry
Lockheed Martin Corporation (LMT) revealed in its latest earnings report this week that sales of its F-35 Fighter Jet have slumped over the last quarter.
Shares of the defense contractor have fallen almost 2% since Monday. Could LMT be poised for a bounce back, or is this the start of a deeper pullback?
All in all, Lockheed delivered a solid earnings report, with earnings per share that exceeded expectations.
The slowing sales of F-15s was attributed mostly to development being down, not a lack of demand. Lockheed has said it is looking into ways to make the popular fighter jet more affordable.
But the slumping sales comes amid the U.S. announcing its intentions to withdraw troops from Afghanistan later this year. That’s leaving many investors concerned over their defense holdings as the U.S. is seemingly looking to limit its global military presence.
Despite that, defense is a huge industry that will still command billions of dollars in government spending every year. I’ll be keeping a sharp eye on any profitable trades we may be able to take as a result of the recent slump.