The proportion of Beyond Meat (WKN: A2N7XQ) has disappointed once again as part of the current earnings season. With sales growth of just over 1%, investors again saw prices fall. To make matters worse, high net losses and overall results did not exactly give hope for a quick turnaround.
The stock price is still not a success story either. At EUR 27.14, the first quarter shock has been priced again. Nevertheless: Less than a year ago, we still saw triple-digit stock prices.
So now is a good time to sell Beyond Meat shares. As always, the answer to such a question is: It depends. Except that the factors are crucial for an initial determination of direction.
Beyond Meat: Sell Now?
Beyond Meat stock can be cheaper. Many investors are probably sitting at a loss. A sale would only come up for me for one reason: the investment dissertation has failed me. The first analysts are already arguing in this direction.
Management still maintains its double-digit sales growth targets for the current financial year 2022. Nevertheless, growth has been weak for several quarters. Despite expanded sales opportunities, despite partnerships with McDonald’s and other restaurant chains. And also despite strong products like McPlant, which investors had high hopes for. In any case, there are indications that these products, which are aimed at the flexible market, are not yet catching on.
If you share this specialty at Beyond Meat, a sale is definitely advisable. A market value of $ 1.59 billion and a price-to-sale ratio of 4 from a non-profit starting position could mean further losses. You should take a little conflicting thinking and long-term belief in the products with you. Otherwise, there may well be a reason why investors who see an investment thesis are unable to invest the money elsewhere.
Reasons to keep or buy?
Holding or even buying shares in Beyond Meat does not seem like the first reflex investors have right now. Despite a few quarters of weakness in a row, however, two factors remain: A strong brand that can be a game changer for the flexitime market, and a tendency for these products to be undeniably there. With a lot of time and gradually changing consumption habits, it can still be an investment dissertation.
But it’s appalling, investors should know. Both the company and the megatrend must prove themselves. They can be slow, and it may take years or decades to get hold of the masses. But if Beyond Meat succeeds in bringing together a large portion of flexitarian products, and the flexitarian market becomes increasingly important, much is possible. Just over $ 100 million in sales per. quarter is still a really small basis for this.
Still, even with a price-to-sale multiple of 4 and net results deep in the red, Beyond Meat has a lot to prove. The stock is now more for counterrists who consider the market and the product to be compelling in the long run.
Article Is Beyond Meat Stock Still Worth Selling Now? first appeared on The Motley Fool Germany.
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Vincent owns shares in Beyond Meat. The Motley Fool owns shares in and recommends Beyond Meat.
Broget Fool Germany 2022