Beyond Meat Inc [NASDAQ:BYND] will be on investors watch list today ahead of the company’s earnings release. For the last few days, the stock has been in a correction reflecting investor anticipation of the results.
After more than a month of gains, traders may have been pulling out, to avoid the risk of a major correction in case the results do not meet expectations.
The cautious tone in the market is largely driven by the prevailing macro-economic conditions. The economy has been weakened by the COVID-19 pandemic, which means even a company with a strong value proposition could see a decline in expected earnings.
That said, there is a good chance that Beyond Meat will report strong earnings. The company has been gaining market share for a while now, as more people understand the impact that large scale production of beef has on the planet.
In fact, consensus estimates by analysts show that they expect the stock to beat analyst expectations. As per the Zack’s analysis, most analyst expected BYND to have earnings of $0.07, much higher than the Zack consensus of $0.03. This means the stock has a Zack Earnings ESP of 113.04%.
Besides the short-term projections, Beyond Meat is one of the companies that are expected to keep gaining in value long term, as it is in a growth industry. The company is currently worth around $12 billion, and research shows that it could climb to a valuation of $74 billion in the next few years.
The company key value driver is that it is constantly expanding its line of plant-based products to meet the needs of all types of customers. It currently has products that range from sausages to ‘ham’burgers It’s product growth is embedded in the mission statement, which states that, by shifting from animal to plant-based meat, the company can positively impact growing worldwide issues that include climate change, human health, animal welfare, and the increasing scarce nature of natural resources.
Looking at its price action, BYND has been in a correction, and if results beat expectations, investors will be looking for a break above the $200 resistance level. This would be an indicator that bulls are back in control after several days of losses, and could see the stock test new highs in the day.
About Beyond Beat Inc
Beyond Meat Inc makes plant-based alternatives to meat products. It is based in El Segundo, California.