It’s fair to say that no stock has been as exciting or as profitable for early investors in 2019 as Beyond Meat Corp (NASDAQ:BYND).
I’ve written a number of times about how this company is the first powerful tech stock initial public offering (IPO) in years.
But, as with all things, Beyond Meat cannot have eternal stock price growth. The stock has a price ceiling, and some investors believe that it has reached it. In my mind, the BYND stock prediction is strong, with the stock potentially having years of gains ahead of it.
First we have to look at the recent past of Beyond Meat stock.
As you can see in the below price chart, the company has had a wild time over the past few months. After peaking around $235.00 a share, the stock has taken a nose dive and lost about $100.00 in value.
Chart courtesy of StockCharts.com
Even with that collapse, BYND stock has netted gains of nearly 500% for early investors. So, overall, it has still been an absolute ringer for many investors’ portfolios.
But many other investors, who weren’t as prescient, are now looking at the company and are wondering if there is still money to be made. And that’s where the Beyond Meat stock prediction comes in.
While the stock has certainly taken a beating since the summer, overall, everything that excited investors about the company’s future is still in place. In fact, the picture has never looked brighter for Beyond Meat.
The company recently scored a partnership with McDonald’s Corp (NYSE:MCD), a highly sought-after companion in the meat-alternative business. (Source: “The Beyond Meat burger is coming to McDonald’s in a Canadian test,” CNN Business, September 26, 2019.)
While the two companies teaming up isn’t solidified long-term yet, Beyond Meat is going to test its burger in 28 Canadian McDonald’s stores for the next several weeks. If things go well, one could imagine the two companies working together long-term, leading to a massive spike in the price of BYND stock.
After all, McDonald’s is one of the most popular fast-food chains in the world, and selling the “Beyond Burger” in even a fraction of its stores could see a gigantic spike in demand for the burger, not only at fast-food sellers, but also at grocery stores.
It’s a win-win for Beyond Meat, and the McDonald’s deal may just be the first such victory. Other fast-food chains—or really any type of restaurant—may want to enter the meat-alternative market by knocking on Beyond Meat’s door. Again, the result would likely be massive gains for Beyond Meat stock.
So purely from this standpoint, it’s hard to be too down with the BYND stock prediction.
Furthermore, while many see the stock’s recent drop from its peak as a sign of a turning tide, the former high is a good barometer of how high Beyond Meat shares can rise again.
The thinking goes, if BYND did it once, it can do it again. Think of Olympian Usain Bolt; he broke world records multiple times. He didn’t just do it once then never attempt it again after failing to top the record in the race that immediately followed.
Just because Beyond Meat stock took a step back right now doesn’t mean it won’t be able to reach—or even outpace—its former highs.
And, as outlined above, there are several ways that Beyond Meat can achieve or exceed its former glory. Partnering with large restaurant chains is a simple and effective way to generate share-price growth.
But now we have to address the possible downside to the BYND stock prediction. There are two main concerns that investors ought to be aware of when investing in Beyond Meat stock. The first is the most obvious: the possibility that the company has reached its peak and it’s all downhill from here.
Even with the global potential for the Beyond Burger, skeptics may view the stock as having long outgrown its potential, reaching way too high, way too fast. It’s a fair argument.
But keep in mind that many of these skeptics were also those who claimed that the marijuana stock market topped out years ago. We’ve seen how that has turned out: major gains for long-term pot stock buyers.
The thing is, when you’re dealing with a nascent industry that has truly global potential (one thing we all share as humans is that we need to eat), you have to understand that putting a ceiling on a stock so early could be the biggest mistake.
The second major concern for investors is competition. There are several other major meat-alternative companies that could go public sooner rather than later. And even if they don’t, they’ll still challenge the company for global dominance by looking to lock in deals with restaurants.
While this is no doubt a problem for Beyond Meat, frankly, there’s no company in the meat-alternative space that can quite match it at this moment, in terms of recognition and overall corporate strength.
That doesn’t mean this can’t change, but it does mean that, at least for the time being, Beyond Meat is the undisputed champion of this space.
While it’s no certainty, my BYND stock prediction sees the company likely regaining its high within the next 12 months or so, meaning we could see massive gains for investors who missed out on the first rush.
I won’t lie to you; the Beyond Meat stock prediction is volatile. There’s a decent chance that the stock holds at its current value for a while yet, or even potentially continues to decrease.
But, considering all the potential locked away within BYND stock, I believe that the company will not only continue to see stock gains, but will likely reach a new all-time high in the next year or so.