On Tuesday, Beyond Meat got a rating downgrade from J.P. Morgan analysts.
Since their IPO in May 3, shares of the plant-based meat substitutes producer has skyrocketed around +600% – something that J.P. Morgan feels reflects a valuation that could potentially make the company vulnerable to a substantial correction in the event of any hiccup in performance. The investment bank downgraded the stock to “neutral” from “overweight” and maintained its price target of $120.
However, J.P. Morgan has also indicated that it is not keen on an “underweight” rating on Beyond Meat at this point, since it is hopeful that the latter’s 2019 fundamentals are likely to surpass the Street expectations. The bank’s perceived downside risk to Beyond Meat is based on an estimated long-term growth path.
Beyond Meat's plant-based foods are expected to more than double its revenue over the next two years, as indicated by the company last week.
Following the rating downgrade by J.P. Morgan, Beyond Meat shares lost -20% on Tuesday.
BYND moved above its 50-day moving average on February 28, 2024 date and that indicates a change from a downward trend to an upward trend. In of 17 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on February 14, 2024. You may want to consider a long position or call options on BYND as a result. In of 87 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for BYND just turned positive on February 09, 2024. Looking at past instances where BYND's MACD turned positive, the stock continued to rise in of 37 cases over the following month. The odds of a continued upward trend are .
Following a +3 3-day Advance, the price is estimated to grow further. Considering data from situations where BYND advanced for three days, in of 266 cases, the price rose further within the following month. The odds of a continued upward trend are .
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 43 cases where BYND's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where BYND declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
BYND broke above its upper Bollinger Band on February 28, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for BYND entered a downward trend on February 16, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. BYND’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: BYND's P/B Ratio (59.524) is slightly higher than the industry average of (8.250). P/E Ratio (0.000) is within average values for comparable stocks, (31.332). BYND's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.690). BYND has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.033). P/S Ratio (1.804) is also within normal values, averaging (28.008).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. BYND’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company, which offers plant-based meat products
A.I.dvisor tells us that BYND and INGR have been poorly correlated (+30% of the time) for the last year. This A.I.-generated data suggests there is low statistical probability that BYND and INGR's prices will move in lockstep.