Beyond Meat (NASDAQ:BYND) stock enjoyed a meteoric rise following its initial public offering in early May. The company has generated considerable hype as consumers show enthusiasm for plant-based protein alternatives. However, shares have plummeted 54% over the past three months.
Early this week Beyond Meat raised its sales outlook after reporting its first quarterly profit. It now expects to book revenues between $265 million and $275 million for the full year. Net revenue blew by forecasts in the third quarter, coming in at $92 million compared to $82 million expected.
Beyond Meat stock exploded on the scene as projections for the plant-based alternative industry have looked meaty, but competition is growing in the sector.
Companies like Nestlé, Tyson Foods, and Impossible Foods all pose a threat early on. Beyond Meat remains confident that its product and brand will push it above its competitors going forward.
The company has already secured promising partnerships with restaurant chains like McDonald’s and Kroger. In this most recent quarter, net income rose to $4.1 million or $0.06 per share, compared to a net loss of $9.3 million or $1.45 per share in the prior year.
The jump into profitability is encouraging in the back half of this fiscal year. Shares had a Relative Strength Index (RSI) of 27 as of close on October 30. This puts Beyond Meat into technically oversold territory.
The stock has been overvalued for months, but this may finally be a solid re-entry point for growth investors who wanted exposure to this promising sector.
Related Stories
