Beyond Meat (NASDAQ:BYND) isn’t favored in the investing community at the moment. However, there’s good news you can sink your teeth into, as Beyond Meat is bringing its tasty fare to high-profile retail store chains in 2023. Besides, I’m bullish on BYND stock because the company’s upcoming earnings report offers a chance for it to demonstrate further improvement in its top and bottom lines.
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California-based Beyond Meat provides meat substitutes in food items that appeal to vegans, vegetarians, and other consumers who may be interested in maintaining healthy and ethical lifestyles. Beyond Meat’s products/ingredients are available in a variety of grocery stores and restaurants.
While it may be the best-known U.S. faux meat provider, the company’s financial future isn’t assured by any means. Still, the next chapter of Beyond Meat’s growth story could bring powerful returns for both the company and its investors.
Beyond Meat: More Products in More Locations
Suffice it to say, Beyond Meat hasn’t enriched its long-term shareholders, and as we’ll see, the company isn’t favored by Wall Street analysts. Also, BYND stock’s chart probably won’t entice momentum-focused traders, though the stock has perked up somewhat during the past couple of weeks.
Why have analysts and investors been downbeat about Beyond Meat? Mainly, it’s because the hype surrounding the meatless foods market has waned during the past few quarters, especially with inflation rearing its ugly head. This was likely a consideration when Piper Sandler analyst Michael Lavery assigned an Underweight rating and harsh $6 price target on BYND stock; Lavery sees “many fundamental challenges” for Beyond Meat that are “not quickly fixed.”
Fair enough, but I suspect that the “fundamental challenges” have already been priced into Beyond Meat stock, and no sensible investor should seek quick fixes. Steady growth is the name of the game in the world of investing, and Beyond Meat is indeed growing its product offerings as well as its presence in well-known store chains.
First, Beyond Meat rolled out the latest version of Beyond Sausage with an “even juicier, meatier taste and texture.” The company is rolling this updated sausage-like product out to 15,000 U.S. retail stores, including Kroger (NYSE:KR) and Albertsons (NYSE:ACI).
Of course, Beyond Meat still sells plenty of its flagship product, the Beyond Burger. In fact, the company hopes to sell a lot of those vegan-friendly burgers at Costco (NASDAQ:COST), where Beyond Meat is expanding its product portfolio.
Hungry for more upbeat news? No problem. In a development that could lead to mouth-watering revenue, Beyond Meat is expanding the distribution of its fake steak product known as Beyond Steak. Consequently, Beyond Steak will be available in the freezer aisle at Whole Foods Market, Publix, Albertsons, Kroger, Walmart (NYSE:WMT), and other popular retail stores.
BYND Stock Traders, Mark Your Calendar for This Date
Clearly, Beyond Meat’s fare is accessible to an expanding target population of meatless food aficionados. What about Beyond Meat’s fundamentals, though? They’re far from perfect but are improving, and soon, the company will have an opportunity to demonstrate financial stability.
Let’s rewind a bit to this year’s first quarter. Beyond Meat reported a per-share net loss of $0.92, which isn’t ideal, but at least the company beat the consensus estimate of a $1.01 per-share loss. Furthermore, that was Beyond Meat’s second consecutive quarterly EPS beat.
In dollar terms, Beyond Meat’s Q1-2023 $59 million net loss showed a notable improvement over the year-earlier quarter’s net loss of $100.5 million. In addition, Beyond Meat’s quarterly revenue of $92.2 million came in slightly higher than the average analyst estimate of $91.7 million.
Thus, on a relative basis (if not in absolute terms), Beyond Meat is on a winning streak. Looking ahead, Beyond Meat is expected to release its second-quarter financial results on August 2. Analysts expect that the company will report a net loss of $0.84 per share, which again would demonstrate improvement. So, be sure to mark your calendar for that date and get ready for what could turn out to be a blowout earnings report from Beyond Meat.
Is BYND Stock a Buy, According to Analysts?
Turning to Wall Street, BYND is a Moderate Sell based six Holds, three Sells, and no Buy ratings. The average Beyond Meat stock price target is $9.86, implying 36.5% downside potential.
If you’re wondering which analyst you should follow if you want to buy and sell BYND stock, the most accurate analyst covering the stock (on a one-year timeframe) is Michael Lavery of Piper Sandler, with an average return of 29.7% per rating and an 85% success rate. Click on the image below to learn more.
Conclusion: Should You Consider BYND Stock?
I sometimes side with analysts, but I’m willing to buck the consensus view this time. Beyond Meat is out of favor on Wall Street now, but even a so-so quarterly report could catalyze a comeback for BYND stock.
Furthermore, Beyond Meat is getting its products into more grocers’ freezers, and that’s a sign of a healthy, expanding business. At the end of the day, Beyond Meat stock is certainly risky, but if you can handle some potential volatility, feel free to consider a small share position in hopes of delicious returns later on.
