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Beyond Meat Stock: Should You Buy the Dip?

Beyond Meat (NASDAQ:BYND) is a California-based company that manufactures, markets, and sellsplant-based meat products in the United States…

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This article was originally published by http://www.baystreet.ca/articles/stockstowatch.aspx?id=13181
Beyond Meat (NASDAQ:BYND) is a California-based company that manufactures, markets, and sells plant-based meat products in the United States and around the world. The plant-based alternatives market received significant hype coming into this new decade. However, Beyond Meat has suffered a steady decline over the past year. Should you look to snatch up this stock on the dip? The company released its first quarter 2022 results on May 11. Net revenues rose only 1.2% year-over- year to $109 million. Meanwhile, it delivered a paltry gross profit of $0.2 million. It also posted an adjusted EBITDA loss of $78.9 million. Beyond Meat was weighed down by the launch of Beyond Meat Jerky, which has a high-cost manufacturing process. The company expects those costs to come down going forward. For the rest of 2022, the company expects uncertainty due to factors like inflation, interest rate hikes, and the lingering impacts of the COVID-19 pandemic. That said, it has reaffirmed its full-year 2022 guidance. The plant-based alternatives market is still geared up for solid growth going forward, but the space is growing more crowded. Beyond Meat will have its work cut out for it in the quarters to come. Shares of Beyond Meat are trading just above its 52-week low. It currently possesses an RSI of 36. That puts the stock just outside of technically oversold territory. I’m intrigued by the plant-based alternatives space, but Beyond Meat still looks too risky in this choppy market.

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