BYND Stock Forecast: Beyond Meat Faces Tough Time Ahead as Short Sellers Loom on Stock.

BYND Stock Forecast: Beyond Meat Faces Tough Time Ahead as Short Sellers Loom on Stock.
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BYND stock forecast: Shares of Beyond Meat (NASDAQ: BYND) are expected to trade between $55.24 and $60.03. The overall recommendation is Sell

2 analyst

BYND stock price closed at $59.28 on 07.02.2022

BYND stock forecast
Metric
Value
Trend
Share Volume
3.07 M
Lower
Average Share Volume
3.9 M
NA
Forward PE (1 Year)
-25.66
Lower

BYND Stock Forecast: Performance Chart

Stock Name
1 day
5 day
1 Month
6 Month
1 Year
1.02%
-9.1%
-11.02%
-54.51%
-64.94%

BYND Stock Forecast: Support and Resistance

Source
Support
Resistance
Recommendation
$53.93(S3)
$59.99(R1)
Sell
$56.55(S3)
$60.08(R1)
Sell

BYND Stock Forecast: Latest News and Videos

Last couple of months were not good for stock markets across the globe as high growth stocks fell sharply starting from fag end of November. The uncertainties looming American’s stock market regarding Fed increasing interest rate is surely causing some indigestion for investors.

Beyond Meat is a company with the great concept of producing meal items with meat-like tastes made purely from plants. They are right on the money by advertising healthy meat products like Beyond Burger and Beyond Sausage in US, Canada and many other countries. But, the stock has not replicated the right intentions of the company and has had a dismal show for the past one year, falling 65%. It got listed on Nasdaq on 3rd May 2019, and got a blistering start touching $234.90 in less than three months on 26th July 2019.

Since then, it had its share of volatility but gave a net negative return of 12.14% since its listing. Let’s dwell on BYND stock forecast for the short term and long term with the help of technical analysis and fundamentals.

BYND Stock Forecast: BYND stock Forecast 2022

  • A bad start – BYND stock price has fallen 9.54% since January 1 2022 (as of 4.02.2022), it touched a high of $ 70.83 on 13th January, but it proved to be a tipping point for the stock and it fell nearly 20% from year high to close at $56.54 on 28th January 2022. It again recovered to $66.88 on 1st February 2022 and is currently trading at $58.68. It has been volatile for 2022 but that is not something unusual for Beyond Meat.
  • The stock is heavily shorted – Although Beyond Meat has seen its share of pain for past one year but the picture for 2022 is not looking great either and analysts see more pain ahead. The number of shorts are climbing day by day and currently an astonishing 38% of the float shares are sold short. It is the highest ratio of shorting in the Russell 1000 index of biggest US listed companies.
  • Relatively Expensive Stock for Food Industry- Even after falling 65% in past one year, it is still not cheap for 2022. Beyond Meat market cap is $ 4 billion approximately. The company has enterprise value of $4.38 billion. For fiscal year 2022, Beyond Meat is expected to generate $641.4 million in revenue and it trades at expensive ratio of 6.8x EV/FY22 revenue. It is quite souring for food industry, for example P/E ratio of General Mills is about 15.
  • New Year – New Partnerships- Recently, Mc Donald announced that it would expand its testing of McPlant burger, a burger which is co-developed by Beyond Meat. If McPlant burger finds its permanent place in Mc Donald menu, it will be huge boost for Beyond Meat for 2022.

Although it has not a very good start for 2022 and it continues to be volatile, if Mc Donald’s saga hits, then patient investors can see a positive BYND stock forecast.

BYND Stock Forecast: Technical Analysis

BYND Stock Forecast

Technically, almost every indicator is signaling sell signal. BYND stock price is trading below every moving average, be it simple or exponential. It is below 20 days, 100 days and 200 days moving average. The other indicators apart from moving averages are also either neutral or sell towards Beyond Meat. RSI (14) is at the level of 42.46, and Stochastic %k (14,3,3) is neutral. The only exception is MACD (12,26) indicating towards buy signal. The major technical indicators are tabulated below

Stock Name
BYND stock
Market Price (07.2.2022)
$59.28
Pivot Points
64.08
Support
43.18(S3)
Resistance
72.06(R1)
Moving Average (50 days EMA)
68.89
Moving Average (200 days EMA)
97.93
RSI(14)
27.69
MACD(12,26)
-2.05
ADX(14)
19.34
Stochastic %k (14,3,3)
39.01
Recommendation
Sell

Going forward, $53 is next support and if BYND stock price breaks that then $43 will act as support. As stock is trading below pivot point, it is expected to face some resistance when it will reclaim daily pivot level. If it breaks pivot level, then $85 will act as tough resistance. $100 acted as support in the month of May and stock recovered from that level, but a support level if broken decisively becomes a strong resistance. If BYND stock price marches past $85, then $100 will act as very strong resistance.

There are numbers of resistances lined up for stock but it is difficult to find support on the chart as it is trading in uncharted territory. Also, as stock is beaten down in past one year, it will not be a surprise if stock marches higher after taking support around $50 in the near future.

Also Read: Nio Stock Forecast 2022

BYND Stock Forecast: BYND Stock Forecast for 2025

If we consider a period of three years down the line, for how BYND stock forecast is that it will perform, then it all depends on how its partnerships with restaurant chains will pan out. Following factors will dictate how stock will perform in longer term:

  • Tough Competition for Beyond Meat: – Beyond Meat concept is not something new and it faces stiff competition from other meatless food vendors like Impossible Foods. Covid 19 had a huge impact on restaurant business and food companies are still in recovery mode only. Going forward, if Beyond Meat can establish its presence among its competitors and keeps its nose high, the stock is likely to perform better than last one year.
  • High Prices needs to be curbed- Usually it is seen that Beyond Meat products are priced higher than other items in the menu. The stubbornness to price higher than relevant items has led to decline in the demand of Beyond Meat products. Also, it turns that Beyond Meat products are not as healthy as they claim it to be. As it uses lot of sodium to replicate taste of meat, overweight on advertising healthy products may raise eyebrows in future.
  • Question on Profitability- Market is very dynamic and is becoming more risk averse than it was two-three years back. Growing companies with negative income are seen with more skeptical eyes ever than before. As it turns out that Beyond Meat is never profitable in any quarter or annual basis. The expenses are increasing in every quarter, taking a toll on profitability. If stock needs to perform in the longer term, company first needs to be profitable on balance sheet and makes it fundamentals stronger to catch the eyes of analysts and retail people.

BYND Stock Forecast: BYND Stock Buy or Sell

Overall, given the BYND stock forecast analysis is not to buy neither for 2022 nor for 2025. A large portion of how the stock will perform will depend on its partnerships with KFC, McDonald and other such food chains. Currently, it is undergoing under trials and if finds a permanent place in the menu, its income and profitability may increase in the future, giving some hope to investors. At present, it is better to sit on the sidelines and keep it under watch as it swings high and low with every news piece.

-Vineet Agarwal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

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