Investing in stocks inevitably means buying into some companies that perform poorly. But the long term shareholders of YETI Holdings, Inc. (NYSE:YETI) have had an unfortunate run in the last three years. Sadly for them, the share price is down 63% in that time. And the ride hasn't got any smoother in recent times over the last year, with the price 21% lower in that time. Unfortunately the share price momentum is still quite negative, with prices down 13% in thirty days.

Since YETI Holdings has shed US$255m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

See our latest analysis for YETI Holdings

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

YETI Holdings saw its EPS decline at a compound rate of 1.3% per year, over the last three years. The share price decline of 28% is actually steeper than the EPS slippage. So it seems the market was too confident about the business, in the past.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We know that YETI Holdings has improved its bottom line lately, but is it going to grow revenue? Check if analysts think YETI Holdings will grow revenue in the future.

A Different Perspective

Investors in YETI Holdings had a tough year, with a total loss of 21%, against a market gain of about 21%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 4%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Before deciding if you like the current share price, check how YETI Holdings scores on these 3 valuation metrics.

Of course YETI Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.