Yeti Holdings just went on sale. Investors may want to consider picking up the stock.

Shares of Yeti, which makes high-end coolers and mugs, were down 12% Thursday after the company reported fiscal second-quarter earnings that disappointed Wall Street.

Yeti's headline numbers appeared solid: The company reported a better-than-expected second-quarter profit and also raised its full-year guidance. Yeti said second-quarter adjusted earnings were 67 cents a share, beating Wall Street forecasts of 54 cents. The company forecast full-year earnings growth of 19% to 21%, up from 14% to 17%.

But there were some weak points, and investors focused on them. Sales of U.S. drinkware were sluggish, while expenses surged, crimping operating margins. Yeti shares traded at around $44 Thursday, down more than 12% and on course for their biggest one-day decline in more than a year.

While investors punished Yeti on Thursday, it's worth noting the stock has still performed well in the past year, gaining about 25%. Wall Street analysts remain fairly bullish. The average target price is $54, about 23% above Thursday's price. Earnings forecasts call for roughly 15% growth in 2026 and 2027.

The stock trades at a P/E of around 14, well below the average of 23 for the consumer discretionary sector. One big reason is Yeti's focus on drinkware -- especially social media-friendly insulated travel mugs. Sales for Yeti's drinkware line, which represents about half of total sales, rose just 2% to $241 million year over year in the latest quarter.

But drinkware has always been a volatile, trend-driven category, with stiff competition from brands like Owala and Stanley. On the company's conference call, CEO Matt Reintjes said sales were held down by weakness in just three SKUs "all tied to well publicized but narrow trend-driven momentum."

A better indicator of Yeti's steady, long-term growth potential is its cooler and international businesses, both of which posted solid second-quarter numbers. Coolers and equipment sales rose 16% to $232 million, while international sales increased 19% to $93 million. What's more, Yeti is still in the early stages of breaking into many of these markets.

"Japan, in its first full year as a direct business, delivered significant growth in the quarter," said Reintjes. "We are also advancing our expansion plans for Korea, China, Indonesia and Taiwan. And by the end of 2026, we expect to be live in 11 markets compared to four at this point last year."

Another weak point in Yeti's quarter was selling, general and administrative costs, which surged 17%, reflecting extra marketing spending and higher distribution costs tied to inflation.

That's a common story for consumer stocks, with the war in Iran delaying a margin rebound many investors had been counting on in 2026. It's a frustration investors should look past, according to Jefferies analyst Randal Konik, who rates the stock a Buy with a price target of $80, representing more than 80% upside from Thursday's price.

"The international playbook -- a story that's in its first or second inning -- will more than offset any volatile cost pressures that are related to changes in oil prices," he says. "It's a quality brand on sale, that won't stay on sale for long."