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Beyond Meat (BYND) Earnings After The Bell: A Test Of Investor Optimism
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Beyond Meat (BYND - Free Report) is the IPO success story of the year, currently trading 525% above its offer price and looking to continue its rally. Just since the beginning of July, BYND is up over 50%. Earnings season is well on its way, and Beyond Meat is on deck with earnings after the bell Today, July 29th.
Beyond Meat, Inc. Price, Consensus and EPS Surprise
Tonight’s earnings is going to be a test of shareholders optimism about this plant-based vegan burger. Beyond Meat represents a broader trend in America today, with catalysts being something along the lines of “a healthier planet, a healthier you”. The question is whether this a long term consumer shift or just a short-term fad.
BYND analysts are estimating an EPS of negative $0.08 per share, along with revenues of $219 million. The current $13.4 billion valuation that the market is giving this stock, given its sales and lack of profits, is nothing short of incredible.
The stock is currently sitting an absurd 61x forward P/S, which can only be compared with recent video tech IPO, Zoom (ZM - Free Report) , which is trading at a 49x forward P/S. These valuations should only be taken with a grain of salt considering the prolific growth that shareholders are expecting in the coming years from these firms.
Is Beyond Meat Healthy
Beyond Meat’s claim to fame is that they are healthier for you and the planet compared to a red-meat patty, but is this true? There is actually no scientific evidence of these plant-based patties being any healthier than regular beef patties.
Beyond Meat patties are made from 20 combined ingredients in order to mimic red meat’s taste and texture, which would qualify this food as ‘processed’. There is also a significant amount of sodium and saturated fat in this false meat. The whole fad seems like an oxymoron because modern dietary trends tell us to stay away from foods that are processed, high in sodium, or high in saturated fat when at the grocery store.
Beyond Meat has almost quadrupled its R&D spending over the past year. It is more than likely that they are aware of the perceived unhealthy aspects of their product and are working on making their false meat ‘healthier’. The issue is balancing both taste and health, which is a hurdle this firm will continue to face.
The real advantage of the trend towards plant-based diets is environmental. Current meat farming practices are seen as unsustainable for the environment. According to Beyond Meat, “51% of global greenhouse gas emissions (are) driven by livestock rearing and processing”. 45% of the global surface is being used for livestock, which will not be sustainable as the world population grows towards capacity.
Competition
All the other big player in the meat industry are putting their foot in the plant-based meat alternative pool. Tyson (TSN - Free Report) just released plant-based chicken nuggets and are planning on coming out with a competing plant-based meat patty soon. With Tyson’s current infrastructure and distribution, they could easily take over this market in a few months if consumers find their product equally as appealing and they are able to compete at a lower price point.
Beyond Meat is sitting at a valuation of just half of this long-time meat behemoth’s market cap, while Tyson is generating 261x the revenue of Beyond Meat.
Take Away
In my opinion, this is just a fad and BYND is not worth anywhere near the valuation that the market has given it, but no one really knows how consumer shifts will change the competitive food landscape. Even if this trend takes off who is to say that Beyond is going to be a market leader in the plant-based meat segment.
Stocks like BYND hold a significant amount of risk because there is so much investor hype but not enough financial evidence to validate its crazy valuations yet. I would categorize BYND as high risk and high potential reward if this is actually a consumer shift and Beyond Meat is able to grab a sizable market share.
In this earnings look for a beat on the topline, which would further prove the company’s growth trajectory. Management guidance is going to be key in this earnings report, and management sentiment in the earnings call will be equally important. When listening to the earnings call focus on what concerns investors are voicing and whether any system issues might be surfacing.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
Image: Bigstock
Beyond Meat (BYND) Earnings After The Bell: A Test Of Investor Optimism
Beyond Meat, Inc. Price, Consensus and EPS Surprise
Beyond Meat, Inc. price-consensus-eps-surprise-chart | Beyond Meat, Inc. Quote
Tonight’s earnings is going to be a test of shareholders optimism about this plant-based vegan burger. Beyond Meat represents a broader trend in America today, with catalysts being something along the lines of “a healthier planet, a healthier you”. The question is whether this a long term consumer shift or just a short-term fad.
BYND analysts are estimating an EPS of negative $0.08 per share, along with revenues of $219 million. The current $13.4 billion valuation that the market is giving this stock, given its sales and lack of profits, is nothing short of incredible.
The stock is currently sitting an absurd 61x forward P/S, which can only be compared with recent video tech IPO, Zoom (ZM - Free Report) , which is trading at a 49x forward P/S. These valuations should only be taken with a grain of salt considering the prolific growth that shareholders are expecting in the coming years from these firms.
Is Beyond Meat Healthy
Beyond Meat’s claim to fame is that they are healthier for you and the planet compared to a red-meat patty, but is this true? There is actually no scientific evidence of these plant-based patties being any healthier than regular beef patties.
Beyond Meat patties are made from 20 combined ingredients in order to mimic red meat’s taste and texture, which would qualify this food as ‘processed’. There is also a significant amount of sodium and saturated fat in this false meat. The whole fad seems like an oxymoron because modern dietary trends tell us to stay away from foods that are processed, high in sodium, or high in saturated fat when at the grocery store.
Beyond Meat has almost quadrupled its R&D spending over the past year. It is more than likely that they are aware of the perceived unhealthy aspects of their product and are working on making their false meat ‘healthier’. The issue is balancing both taste and health, which is a hurdle this firm will continue to face.
The real advantage of the trend towards plant-based diets is environmental. Current meat farming practices are seen as unsustainable for the environment. According to Beyond Meat, “51% of global greenhouse gas emissions (are) driven by livestock rearing and processing”. 45% of the global surface is being used for livestock, which will not be sustainable as the world population grows towards capacity.
Competition
All the other big player in the meat industry are putting their foot in the plant-based meat alternative pool. Tyson (TSN - Free Report) just released plant-based chicken nuggets and are planning on coming out with a competing plant-based meat patty soon. With Tyson’s current infrastructure and distribution, they could easily take over this market in a few months if consumers find their product equally as appealing and they are able to compete at a lower price point.
Beyond Meat is sitting at a valuation of just half of this long-time meat behemoth’s market cap, while Tyson is generating 261x the revenue of Beyond Meat.
Take Away
In my opinion, this is just a fad and BYND is not worth anywhere near the valuation that the market has given it, but no one really knows how consumer shifts will change the competitive food landscape. Even if this trend takes off who is to say that Beyond is going to be a market leader in the plant-based meat segment.
Stocks like BYND hold a significant amount of risk because there is so much investor hype but not enough financial evidence to validate its crazy valuations yet. I would categorize BYND as high risk and high potential reward if this is actually a consumer shift and Beyond Meat is able to grab a sizable market share.
In this earnings look for a beat on the topline, which would further prove the company’s growth trajectory. Management guidance is going to be key in this earnings report, and management sentiment in the earnings call will be equally important. When listening to the earnings call focus on what concerns investors are voicing and whether any system issues might be surfacing.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>