Beyond Meat Faces Challenges and Opportunities Ahead of Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy CAG?
Source: NASDAQ.COM
- Earnings Expectations Decline: Beyond Meat is projected to see a nearly 17% year-over-year revenue drop to $63.8 million for Q4, reflecting ongoing struggles in the competitive plant-based meat market, which may further weaken investor confidence.
- Profitability Continues to Deteriorate: Analysts expect a narrower net loss of $0.10 per share, but given the company's history of frequent earnings misses, this estimate may be overly optimistic, potentially impacting stock performance.
- Increased Competitive Pressure: Beyond Meat faces significant competition from rivals like Impossible Foods, which has made notable inroads into the fast-food segment, and rumors of an IPO could further dilute market share.
- Cautious Market Reaction: Despite a nearly 11% decline in stock price year-to-date, analysts remain pessimistic about Beyond Meat's future performance, suggesting that even a short-term profit would unlikely restore long-term market trust.
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Analyst Views on CAG
Wall Street analysts forecast CAG stock price to fall
14 Analyst Rating
1 Buy
12 Hold
1 Sell
Hold
Current: 18.860
Low
16.00
Averages
18.67
High
22.00
Current: 18.860
Low
16.00
Averages
18.67
High
22.00
About CAG
Conagra Brands, Inc. is a branded food company. The Company’s segments include Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. The Grocery & Snacks segment includes branded, shelf-stable food products sold in various retail channels in the United States. The Refrigerated & Frozen segment includes branded, temperature-controlled food products sold in various retail channels in the United States. The International segment includes branded food products in various temperature states, sold in various retail and foodservice channels outside the United States. The Foodservice segment includes branded and customized food products, including meals, entrees, sauces, and a variety of custom-manufactured culinary products that are packaged for sale to restaurants and other foodservice establishments primarily in the United States. Its brands include Birds Eye, Duncan Hines, Healthy Choice, Marie Callender's, Reddi-wip, Slim Jim, and Angie's BOOMCHICKAPOP.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Beyond Meat's Fourth Quarter Earnings Outlook
- Declining Revenue Expectations: Beyond Meat is projected to see a nearly 17% year-over-year decline in fourth-quarter revenue to $63.8 million, reflecting ongoing challenges in the competitive plant-based meat market, which may further weaken investor confidence.
- Increased Competitive Pressure: With the rise of competitors like Impossible Foods and the entry of major food brands such as Conagra Brands and Kellanova, Beyond Meat faces intensified market competition that could impact its market share and profitability.
- Poor Historical Performance: Since its IPO in 2019, Beyond Meat has only posted two quarters of net income, with all other quarters showing losses, highlighting the company's long-term struggles with profitability and leading to cautious investor sentiment regarding its future performance.
- Stock Price Volatility Risk: Although Beyond Meat's stock has dropped nearly 11%, analysts generally maintain a pessimistic outlook on its future performance, suggesting that even if there is a short-term earnings rebound, long-standing profitability issues will continue to constrain sustained stock price increases.
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Beyond Meat Faces Challenges and Opportunities Ahead of Earnings
- Earnings Expectations Decline: Beyond Meat is projected to see a nearly 17% year-over-year revenue drop to $63.8 million for Q4, reflecting ongoing struggles in the competitive plant-based meat market, which may further weaken investor confidence.
- Profitability Continues to Deteriorate: Analysts expect a narrower net loss of $0.10 per share, but given the company's history of frequent earnings misses, this estimate may be overly optimistic, potentially impacting stock performance.
- Increased Competitive Pressure: Beyond Meat faces significant competition from rivals like Impossible Foods, which has made notable inroads into the fast-food segment, and rumors of an IPO could further dilute market share.
- Cautious Market Reaction: Despite a nearly 11% decline in stock price year-to-date, analysts remain pessimistic about Beyond Meat's future performance, suggesting that even a short-term profit would unlikely restore long-term market trust.
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Investment Opportunities in Conagra Brands and Macy's
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Beyond Meat's Fourth Quarter Earnings Outlook
- Declining Revenue Expectations: Beyond Meat is projected to see a nearly 17% year-over-year decline in fourth-quarter revenue to $63.8 million, reflecting ongoing challenges in the competitive plant-based meat market, which may further weaken investor confidence.
- Increased Competitive Pressure: With the rise of competitors like Impossible Foods and the entry of major food brands such as Conagra Brands and Kellanova, Beyond Meat faces intensified market competition that could impact its market share and profitability.
- Poor Historical Performance: Since its IPO in 2019, Beyond Meat has only posted two quarters of net income, with all other quarters showing losses, highlighting the company's long-term struggles with profitability and leading to cautious investor sentiment regarding its future performance.
- Stock Price Volatility Risk: Although Beyond Meat's stock has dropped nearly 11%, analysts generally maintain a pessimistic outlook on its future performance, suggesting that even if there is a short-term earnings rebound, long-standing profitability issues will continue to constrain sustained stock price increases.
See More
Beyond Meat Faces Challenges and Opportunities Ahead of Earnings
- Earnings Expectations Decline: Beyond Meat is projected to see a nearly 17% year-over-year revenue drop to $63.8 million for Q4, reflecting ongoing struggles in the competitive plant-based meat market, which may further weaken investor confidence.
- Profitability Continues to Deteriorate: Analysts expect a narrower net loss of $0.10 per share, but given the company's history of frequent earnings misses, this estimate may be overly optimistic, potentially impacting stock performance.
- Increased Competitive Pressure: Beyond Meat faces significant competition from rivals like Impossible Foods, which has made notable inroads into the fast-food segment, and rumors of an IPO could further dilute market share.
- Cautious Market Reaction: Despite a nearly 11% decline in stock price year-to-date, analysts remain pessimistic about Beyond Meat's future performance, suggesting that even a short-term profit would unlikely restore long-term market trust.
See More
The S&P 500 Welcomes a New Yield Leader, Appearing Much More Secure Than Its Predecessor.
New Yield King: The S&P 500 has a new yield king, indicating a shift in market leadership.
Sturdier Throne: The current yield king is considered to be in a more stable position compared to the previous one.
See More
The S&P 500 Welcomes a New Dividend King, Offering Greater Stability Than Its Predecessor.
- New Dividend Yield King: The S&P 500 has a new leader in terms of dividend yield, marking a significant change in the index's performance metrics.
- Sturdier Position: The current dividend yield king is considered to be in a more stable position compared to its predecessor, suggesting improved financial health or market conditions.
See More
Consumer Stocks Show Strong Rebound Potential
- Conagra's Recovery Plan: Despite a 20% drop in stock price over the past year, Conagra Brands is launching an AI-driven 'Project Catalyst' to revamp its core business and tackle challenges from inflation and changing consumer habits, potentially paving the way for recovery.
- Macy's Financial Improvement: Macy's stock has surged nearly 75% in the last six months due to cost-cutting and a shift towards affluent customers, and with a low forward P/E of 12, there is room for valuation expansion, especially following the bankruptcy of competitor Saks Global, which could enhance market share.
- Signet's Stock Surge: Signet Jewelers' shares have risen 80% over the past year, driven by successful strategies from CEO J.K. Symancyk, including brand differentiation and embracing lab-grown diamonds, although analysts project only 4% earnings growth for the fiscal year.
- Future Growth Expectations: Signet's valuation remains low at 8.5 times forward earnings, but forecasts suggest earnings growth could reach 19.7% this fiscal year, providing a catalyst for valuation expansion and attracting more investor interest.
See More
Investment Opportunities in Conagra Brands and Macy's
- Conagra Brands Dividend Appeal: Conagra Brands offers a 7.6% dividend yield, despite a more than 20% decline in share price over the past year; the company is leveraging AI through its 'Project Catalyst' initiative to revamp its core business and enhance long-term shareholder value.
- Macy's Financial Improvement: Macy's shares surged nearly 75% in the last six months due to cost-cutting and a pivot towards affluent customers, and despite its lower P/E ratio compared to peers, there is potential for valuation expansion, especially following the bankruptcy of competitor Saks Global.
- Signet Jewelers Growth Potential: Signet Jewelers' stock has risen 80% over the past year, driven by successful strategies from CEO J.K. Symancyk; while earnings growth is projected at only 4% for the current fiscal year, a forecasted 19.7% growth could elevate its valuation.
- Market Uncertainty Impact: Despite high market uncertainty, many stocks retain their recent gains, and analysts suggest investors consider stocks like Conagra Brands, Macy's, and Signet Jewelers as solid contenders for a long-term portfolio.
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