#7 - Beyond Meat (NASDAQ:BYND)
The last stock on this list of inflation-busting stocks is Beyond Meat (NASDAQ:BYND). BYND stock has been tough for investors to love since it went public in 2019. And I’m aware of recent headlines in which Dunkin Brands is pulling the Beyond Meat breakfast sandwich from all but select locations. This wouldn’t be the first time that the plant-based product has had disappointing sales in pilot projects.
But have you looked at meat prices? So have I. And that means the door is open for customers who are so inclined to give the product a chance. In the company’s most recent earnings report, they cited several positive trends supporting their position as the number one brand for refrigerated plant-based meat. For the trailing 12 months ending March 28, 2021 the company saw its U.S. household penetration increase by 10 basis points to 5.4% with repeat purchases climbing to 56.9% from 55.3% in the prior quarter. And net revenues in the U.S. were up 28% year-over-year.
It appears that investors may have the same idea. As of this writing, the BYND stock chart is looking favorable with pricing consolidating around its 200-day moving average with reduced volatility.
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)
You may be thinking, is inflation really a big deal? Or is this just an issue that will resolve itself? There’s certainly an argument for either option.
On a macroeconomic level, perhaps inflation is a long-term nothing burger. I can support the broad concept that many of the price hikes that we’re seeing are transitory in nature. After all, it’s hard to simulate the supply-demand imbalance caused by the Covid-19 pandemic.
But I urge you to consider one key point. To co-opt another idiom, all inflation is local. Or put another way inflation means one thing on Wall Street and something quite different on Main Street. Plus even if the effects of inflation are transitory, many analysts project higher prices to last at least through 2021 and perhaps longer. To many consumers, inflation will make a dent in budgets for some time to come.
However, as I stated in the introduction, as an investor your goal is to profit from either scenario. That’s why it’s important to position yourself in the stocks and sectors that will benefit from inflation.
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