What Happened?

A number of stocks fell in the afternoon session after the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. 

The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Consumer Discretionary - Travel and Vacation Providers company Carnival (NYSE: CCL) fell 5.5%. Is now the time to buy Carnival? Access our full analysis report here, it’s free.
• Consumer Discretionary - Travel and Vacation Providers company Hilton Grand Vacations (NYSE: HGV) fell 3.4%. Is now the time to buy Hilton Grand Vacations? Access our full analysis report here, it’s free.
• Consumer Discretionary - Travel and Vacation Providers company Lindblad Expeditions (NASDAQ: LIND) fell 4.2%. Is now the time to buy Lindblad Expeditions? Access our full analysis report here, it’s free.
• Consumer Discretionary - Leisure Products company YETI (NYSE: YETI) fell 6.1%. Is now the time to buy YETI? Access our full analysis report here, it’s free.
• Consumer Discretionary - Leisure Facilities company Callaway Golf Company (NYSE: CALY) fell 5.3%. Is now the time to buy Callaway Golf Company? Access our full analysis report here, it’s free.

Zooming In On YETI (YETI)

YETI’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 4 days ago when the stock dropped 12.3% on the news that the company issued full-year guidance that fell short of analyst expectations, overshadowing its better-than-expected fourth-quarter results. 

The premium outdoor products maker reported fourth-quarter adjusted earnings of $0.92 per share on revenue of $583.7 million. While revenue was in line with forecasts, the profit figure beat Wall Street's expectations. However, investors focused on the weaker outlook for the upcoming year. YETI's adjusted earnings per share guidance for the full-year 2026 has a midpoint of $2.80, which missed analyst consensus estimates. The report also highlighted existing pressures, as the company's operating margin for the quarter declined to 12.9% from 14.9% in the same period last year. Additionally, its adjusted earnings per share of $0.92 was down from $1.00 in the prior-year quarter, signaling a decline in year-over-year profitability despite the beat against estimates.

YETI is flat since the beginning of the year, and at $44.75 per share, it is trading 11.9% below its 52-week high of $50.77 from January 2026. Investors who bought $1,000 worth of YETI’s shares 5 years ago would now be looking at an investment worth $609.52.

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