Beyond Meat, Inc. [NASDAQ: BYND]: The appetite for plant-based meat is growing, and Wall Street is not being left behind, as seen in Beyond Meat’s stock performance. I covered the stock just after the IPO, and touched on the bullish sentiment building up around it.
In the article titled, “Beyond Meat (BYND) Shares On the Rise: Positive Sentiments Keep the Fire Burning”, I noted that the stock could sustain a bull run if it broke above the $97.5 resistance level. The stock hasn’t disappointed. Ever since it broke this resistance and pushed above $100, BYND has been on a sustained bull run, and hit highs of $208 in Tuesday’s trading session. That means BYND has seen roughly a 113% gain potential since I covered it back on May 30, 2019.
Yesterday’s bullish momentum and run to $208 was driven mostly by anticipation of strong Q2 results. The company looks to release its Q2 results and analysts expect the company to report revenues of $52.7 million and a loss of 8 cents per share. If it beats these expectations as the current buying momentum suggests, then BYND could see another surge in value in the coming week. When the company released its Q1 results and they beat analyst expectations, it soared by about 20%.
There are a number of factors supporting Beyond Meat’s growth at the moment. The first one is the growing consumer interest in meat alternatives. A research by NPD group found out that 18% of Americans are cutting on their meat intake. Restaurants too have been adding Beyond Meat products to their menus. Some of the more notable ones include Restaurant Brands International and Blue Apron.
From the charts, BYND has eased up after yesterday’s rally that saw it cross the $200 mark. After testing a low of $191.78 towards the end of yesterday’s trading session, it bounced back closing at $195.48. It’s a good indicator that bulls are still around, and the pullback was possibly driven by short-term profit taking. In the day, the key level to watch is $200. This could offer some resistance, but if it’s broken, BYND could retest the day’s high of $208.48, which is a major short-term resistance.
Like I always say, “Trade the Chart, not the Stock.”