#7 - Beyond Meat, Inc. (NASDAQ:BYND)
The plant-based food trend is real and likely to grow in the coming decade. So please don’t mistake this critique of Beyond Meat, Inc. (NASDAQ:BYND) as being a hatchet job for the concept.
The reason to avoid BYND stock at this time is a matter of economics. Simply put, the company’s products may appeal to a niche market, but that market is not growing.
There was optimism as inflation priced beef off of the shopping lists of many middle-income Americans. This potentially took away one of the obstacles that Beyond Meat faced. That is, consumers had to pay a premium to give the product a try. So when consumers were “trading down” with regard to their proteins, some thought it opened a window.
That’s not the case as Beyond Meat finds itself cutting prices to incentivize sales. BYND stock is down 77% for the year and while it may have bottomed, there doesn’t appear to be much upside to owning the stock at this time.
About Beyond Meat
Beyond Meat, Inc, a plant-based meat company, develops, manufactures, markets, and sells plant-based meat products in the United States and internationally. The company sells a range of plant-based meat products across the platforms of beef, pork, and poultry. It sells its products through grocery, mass merchandiser, club stores, and natural retailer channels, as well as various food-away-from-home channels, including restaurants, foodservice outlets, and schools.
Read More - Current Price
- $4.89
- Consensus Rating
- Reduce
- Ratings Breakdown
- 0 Buy Ratings, 3 Hold Ratings, 3 Sell Ratings.
- Consensus Price Target
- $5.50 (12.5% Upside)
Selling stocks is not easy if you look at selling as “failing" at investing. But that should not be the way you think about it. Even a legendary “buy and hold" investor like Warren Buffett sells stocks every now and then. And when he does, he'll usually be clear that the reason he bought the stock in the first place no longer exists.
Selling doesn't mean saying goodbye to a stock forever. In some cases, it just means that it's time to let it go for now. When the market is in a correction mode, it's no time to play hero ball. This is a time to be highly selective. And that means sticking to stocks with a proven track record.
Every investor wants to find the next Amazon, Inc. (NASDAQ:AMZN) or Apple Inc. (NASDAQ:AAPL) when they were selling for under $10. But those are hard to find, and most investors should only reserve a small fraction of their portfolio for such stocks.
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