1 Stock I’d Buy Before Yeti in 2026

• Yeti Holdings has slow revenue growth, which explains why its shares are down 35% over the past five years.

• Deckers Outdoor had a miserable 2025, but the valuation is too low to ignore right now.

• International growth remains strong for Deckers Outdoor, and if domestic sales recover, the stock is likely to rebound.

• 10 stocks we like better than Deckers Outdoor ›

Yeti Companies (NYSE: YETI) barely exceeded S&P 500 in 2025 with an 18% profit, but slow revenue growth makes a repeat performance less likely for the outdoor recreation products supplier.

A 35% drop over the past five years justifies investor caution, but there’s another outdoor stock that should do well in 2026.

Outdoor Deckers (NYSE: COVERED)the parent company of Hoka and Ugg, looks set to rebound after losing nearly half its value in 2025. The stock has more than doubled in the last five years, showing what’s possible once this stock gains momentum. These are some of the reasons why Hoka’s parent company may come back in 2026 and be a better pick than Yeti Holdings.

Deckers Outdoor rallied a bit in 2024 and fell sharply in 2025, but the stock now looks like a bargain. It trades on a price-to-earnings (P/E) ratio of 15.4, despite posting stable revenue and net income growth rates.

Hoka and Ugg sales achieved double-digit year-over-year growth rates in the second quarter of the company’s fiscal 2026, while net income increased 11% year over year. Deckers Outdoor’s net profit margin nearly surpassed 20% in the quarter.

Deckers Outdoor had higher revenue growth rates in previous years, so it makes sense that the stock would decline in 2025. However, the drop may have been a bit exaggerated. For example, Nike it has a much higher P/E ratio of 36, despite posting lower year-over-year revenue and net income growth rates.

Hoka’s parent company has an attractive valuation, especially compared to Yeti Holdings, which also has a higher P/E ratio despite lower growth rates. Yeti Holdings also has smaller profit margins than Deckers Outdoor.

Deckers Outdoor investors couldn’t have been too happy with domestic sales falling 1.7% year over year in Q2 FY26. However, the company made up for it with a substantial 29.3% year over year improvement in international net sales.

International growth is becoming a larger segment of total revenue, and if growth rates remain high for global customers, it may translate into higher overall revenue growth.

The strong appeal of global customers can drive growth amid tariffs. If tariffs decrease, Deckers Outdoor may find itself in a position to boost domestic sales. Year-over-year revenue growth can accelerate rapidly if domestic markets gain momentum. However, recent earnings results show that Hoka’s parent company is dominating global markets and gaining market share.

Yeti Holdings also reported lower year-over-year sales in the U.S. and 14% year-over-year revenue growth in international markets. However, international sales don’t affect Yeti Holdings as much, as that part of the business is a smaller slice of the pie than Deckers Outdoor’s international revenue.

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Marc Guberti has no position in any of the securities mentioned. The Motley Fool has positions and recommends Deckers Outdoor and Nike. The Motley Fool recommends Yeti. The Motley Fool has a disclosure policy.

1 Stock You’d Buy Before Yeti in 2026 was originally published by The Motley Fool