Beyond Meat Inc. (BYND) was priced at $192 on January 27. Today, the stock is trading at around $130. Making matters worse is that BYND has steadily slid across the prior three months with no end in sight.
It appears as though the BYND bulls have lost faith in this former Wall Street Darling. Nearly every time BYND has inched higher in recent months, selling pressure has promptly kicked in, ultimately sending the stock lower.
Where does BYND go from here? Is the stock a buy at $130? Let's find out.
BYND Points of Note
BYND makes faux meat products to help people live healthier lives without harming the environment and animals. Examples of BYND products include Beyond Meat, Beyond Burgers, Beyond Sausage, Beyond Chicken, Beyond Meatballs, and Beyond Beef. BYND also sells vegan offerings under the brand names of The Cookout Classic and Eat What You Love.
BYND is currently trading about $50 above its 52-week low of $82.10. The stock is about $90 below its 52-week high of $221. BYND's brass is currently hard at work attempting to improve the company's product distribution capability in the United States and abroad. If everything goes as planned, BYND will expand its product distributions throughout European retail locations in the months ahead. The hope is that the company's product distribution will cover Germany, Austria, Switzerland, the Netherlands, and the United Kingdom. The expanded distribution is fueled by the company's sales which have increased nearly 50% across the past couple of years.
Currently, BYND products are sold at 122,000 retail stores, including food service locations in more than 80 nations. BYND even has deals in place to sell its fake meat at Chinese stores. The company has gone as far as establishing a manufacturing facility in the Jiaxing Economic and Technological Development Zone within Shanghai. Add in the fact that BYND has partnered with Yum Brands (YUM) to make plant-based products for the company's fast-food locations, and there is even more reason to be interested in this stock.
Though the future looks bright for BYND, the bullish sentiment must be tempered with cold hard facts. The number of companies striving to capture the vegan market share is rapidly increasing. From Tyson Foods (TSN) to Kellogg (K), Maple Leaf Foods (MLFNF), Modern Plant Based Foods (SUVRF), and beyond, a growing number of businesses are zeroing in on consumers who are shifting away from meat and dairy.
BYND According to the Analysts
Analysts are bearish on BYND. Check out the average analyst target price for BYND, and you will find it is a mere $128.80. If BYND slid to this point, it would have decreased by more than 6%. The lowest target price for the stock is a measly $58, while its highest is $190. Of the 15 analysts who cover the stock, only four consider it a Buy or Strong Buy.
BYND POWR Ratings
BYND is a POWR Ratings dud. The stock's overall grade is F, which translates into a Strong Sell. The stock has a grade of F in the Quality, Sentiment, Value, and Growth components. Click here to learn more about how BYND grades out in the Momentum and Stability components.
Should Investors buy the BYND Dip?
No. BYND disappoints in the POWR Ratings with a Strong Sell rating and F grades in the majority of the POWR components. Add in the fact that the analysts' average target price for the stock is below its current trading price, and there is even more reason to invest your money in other stocks. Investors should refrain from establishing a position in BYND until its POWR Rating increases to a Buy or Strong Buy.
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BYND shares . Year-to-date, BYND has gained 5.18%, versus a 10.60% rise in the benchmark S&P 500 index during the same period.
About the Author: Patrick Ryan
Patrick Ryan has more than a dozen years of investing experience with a focus on information technology, consumer and entertainment sectors. In addition to working for StockNews, Patrick has also written for Wealth Authority and Fallon Wealth Management.
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