Oct 25, 2021 (Baystreet.ca via COMTEX) -- Shares of Beyond Meat (NAS:BYND) plummeted on Friday after the company adjusted revenue projections for its upcoming earnings report. For the third quarter, the company now expects net sales will be $106 million. Previously, it was forecasting between $120 million to $140 million in sales. Analysts were already bracing for a let down, with multiple brokerages downgrading the stock in recent months, including Piper Sandler which adjusted down its price target for the stock in September from $120 to just $95.
Beyond Meat won't fully released its third-quarter results until next month. Historically, the stock has struggled after the release of its earnings, and so it wouldn't be surprising if it were to fall even further down in November. Trading at around its 52-week lows, Beyond Meat's stock is currently trading at levels not seen since April 2020.
For investors who are willing to take a chance on the stock, it could be a good contrarian bet right now. Beyond says the recent struggles are due to the delta variant and labour shortages - issues that likely won't persist over the long term. And with Beyond recently securing a deal with McDonald's (NYS:MCD) that would have its patties used in the restaurant chain's McPlant burger, there should be a lot more growth in the not-too-distant future. Throw in a recovery from the pandemic plus new plant-based chicken tenders, and Beyond Meat could make for a top growth stock to own for years.
While its shares are down right now, I wouldn't count out Beyond's stock over the long run.
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