With a low bar set in front of its going into the fourth quarter, all eyes will set on Beyond Meat and whether it can effectively manage through ongoing headwinds.įor the third quarter, Beyond Meat posted a wider-than-expected per-share loss of $0.87. Such COVID-19 headwinds have held many companies back over the past year.
Undoubtedly, supply-chain problems and labor issues are not unique to Beyond Meat. Management now expects revenue to fall in a range below its consensus, pointing the finger at COVID-induced supply-chain woes and labor shortages. Profitability prospects seem distant, which is not good, given rates are likely to rise considerably over the coming years. The company clocked in some underwhelming third-quarter numbers alongside some pretty muted guidance. The analyst community has the right to be skeptical. (See Analysts’ Top Stocks on TipRanks) Beyond Meat Sinks Further into the Seemingly Endless Abyss For that reason, I am inclined to side with the lone bull analyst on the name.
Still, the valuation is compelling for true believers in the company's alt-meat products.Īt 8.7 times sales, BYND stock isn't cheap, but relative to its longer-term growth potential, it may be a relative glimmer of value in an otherwise lofty stock market. But how would these numbers change if you are interested in holding BYND stock for a shorter or a longer time period? You can test the answer and many other combinations on the Trefis Machine Learning Engine to test BYND stock chances of a rise after a fall and vice versa.There aren't many things to get excited about going into the new year. Also, there is a 56% probability that the stock will give a positive return in the next three months. According to the Trefis Machine Learning Engine, which identifies trends in a company’s stock price data for the last two years, returns for BYND stock average 63% in the next three-month (63 trading days) period after experiencing a 49% drop over the previous six-months (126 trading days) period. We believe this is likely to be a temporary stumbling block. But will BYND’s stock continue its downward trajectory over the coming weeks, or is a recovery in the stock more likely? With continued high investment in R&D, investors are worried that another Covid-19 wave will take a toll on the company’s foodservice division, with top line growth being affected even as the company continues to incur higher expenses. In Q2 2021, despite revenues rising 32% y-o-y, net loss almost doubled from $10.2 million to $19.7 million on account of higher R&D expenses. Also, there are some concerns regarding the company’s profitability. If the cases continue to rise and some form of lockdowns are reimposed, it will lead to supply bottlenecks and reduced demand for these new products, thus affecting the company’s top line growth. Beyond Meat recently announced the launch of its new plant-based chicken tenders at restaurants in the U.S. The spread of the Delta variant has also led to fear and uncertainty regarding re-imposition of lockdowns. A major part of this decline has come in July 2021, mainly due to caution on the part of investors on the foodservice sector amidst resurgence in Covid-positive cases. Beyond Meat stock (NASDAQ: BYND) has dropped almost 50% in the last six months and currently trades at $127 per share.
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