• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

I'm Warming to Weber After Rival Traeger's Post-Earnings Grilling

The grill maker's stock is near its IPO price, and the high level of short interest in Weber is an attention-getter.
By JONATHAN HELLER
Nov 17, 2021 | 09:30 AM EST
Stocks quotes in this article: COOK, WEBR, DNUT, BFI, NAPA, VWE

High-end grill maker Traeger Inc. (COOK) got grilled Tuesday, falling nearly 16% after reporting third- quarter earnings that were worse than expected. While revenue of $162 million was actually $21 million ahead of the consensus, the quarterly loss (adjusted) of nine cents a share was three cents worse than consensus.

It has been quite a ride for Traeger, which went public in July at $18 a share, hit the mid-$32 range within two weeks of the initial public offering and closed Tuesday at $16.57. COOK currently trades at just under 25x next year's consensus estimates.

The thing that was more interesting was Tuesday's action in fellow grill maker Weber Inc. (WEBR) , which dropped about 7% on no company-specific news but likely in sympathy with COOK. Weber went public at $14 a share just five days after Traeger's debut, rose above $20 intraday in its first week of trading, and closed Tuesday at $14.57.

Weber recently initiated a four-cent quarterly dividend, which implies a 1.1% forward dividend yield. Its shares currently trade at 23x next year's consensus estimates of 62 cents a share, with a healthy amount of analysts (eight) covering the name.

I am warming to Weber. Some might call it a busted IPO, but that terminology might be a bit strong in this case. It is a very well-known brand name and I am partial to its products, including the Weber grill that has been in my backyard for the last 20 years. Weber in my view produces high-quality products.

There's one other facet of Weber that caught my eye Tuesday, namely that the short interest currently is reported at 22.98%. That's a number to keep an eye on.

As a value investor, I am not typically a buyer of recent IPOs. If anything, I will wait for the luster to wear off, for the growth crowd to move on, and for the price to drop far enough to build in a margin of safety. There are plenty of recent IPOs in which I am interested. Besides Weber, there's Krispy Kreme (DNUT) , BurgerFi International (BFI) , The Duckhorn Portfolio (NAPA) and Vintage Wine Estates (VWE) ; all are names that are intriguing if they get cheap enough.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
TAGS: IPOs | Earnings | Investing | Stocks | Value Investing | Consumer | Consumer Discretionary

More from Stocks

Melvin Capital's Demise Presents a Beauty of an Opportunity

Brad Ginesin
May 22, 2022 1:20 PM EDT

The top holder in several companies, the hedge fund's abrupt liquidation has contributed to weakness.

I'm Organizing a Bottom-Fishing Expedition

Bret Jensen
May 22, 2022 11:00 AM EDT

It is easy to see the value of this retail play.

Here's the Secret to Market Timing

James "Rev Shark" DePorre
May 21, 2022 10:00 AM EDT

You've probably been told timing the market is futile, but here's a way to make it possible -- if you're willing to do the work.

It's Official: That Hairy Animal With Claws and Sharp Teeth Is a Bear

James "Rev Shark" DePorre
May 20, 2022 4:31 PM EDT

Along with the media proclamation of a bear market, we have some improvement in the charts of many smaller stocks, but ...

Applied Materials Slips on Miss: Where Will the Chips May Fall

Bruce Kamich
May 20, 2022 1:00 PM EDT

Let's see what the charts say.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 02:24 PM EDT PAUL PRICE

    An interesting chart

    I'm betting heavily that stocks will be way up aga...
  • 10:10 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    "Market Timing for Dummies"
  • 01:44 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10 Portfolio

    We're making a series of trades here.
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login