Jim Cramer: Yeti Holdings is on sale right now

Yeti Holdings Inc (NYSE: YETI) has tanked more than 40% over the past five months, which, as per Jim Cramer, makes up for a fantastic opportunity to buy a quality name at a deep discount.

Cramer’s bull case for Yeti Holdings Inc

Cramer’s confidence in the hard-hit stock stems from its gross margin that’s still “substantially” better than before the pandemic. According to the Mad Money host:

Yeti is committed to growing its product portfolio. Cramer is also bullish on its push into direct-to-consumer.

Yeti is very attractive in terms of valuation

On the valuation front, Cramer sees Yeti Holdings down 20% for the year as an absolute treat. Explaining his thesis that the stock is significantly undervalued, he said:

Yeti announced a share repurchase programme worth $100 million in February, which proves that the management also sees the stock as undervalued, he concluded.