BYND - At 50% Off Its High Is It Time to Buy Beyond Meat Stock?
2024-04-02 09:19:00 ET
Investors have a chance to buy Beyond Meat (NASDAQ: BYND) stock at close to fire-sale prices these days. Yet there's no shortage of reasons for this deep discount, which has shares trading at about half of their recent highs. The plant-based meat specialist was rocked by slumping demand following the pandemic-era sales spike. Consumers in the past year haven't been motivated by big price cuts on its meat substitute products, either. Sales are sinking and losses are mounting.
That might not sound like a recipe for positive shareholder returns from here. However, Beyond Meat is seeing growth in some important markets outside of the core U.S. segment. Inventory is down, too. That's good news for a company with unsold vegan foods stacking up in warehouses over the last two years. Getting the inventories down to a more manageable level should make the whole business more efficient.
And management is preparing an aggressive restructuring program that could put the company back on a path to profitability starting later in 2024. The current share price reflects lots of pessimism about the business. Against that backdrop, let's look at whether Beyond Meat stock might be a good buy while it trades about 50% below its 52-week highs.
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At 50% Off Its High, Is It Time to Buy Beyond Meat Stock?