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Beyond Meat stock outlook as shares pull back to trim weekly gains

Beyond Meat stock

On Thursday, Beyond Meat Inc. (NASDAQ:BYND) shares declined by 1.2% to extend the two-day losses closer to 6%. The stock spiked earlier this week, surging by more than 12% after announcing a partnership deal with McDonald’s Corp (NYSE:MCD). 

Beyond Meat has teamed up with the global fast-food company to launch McPlant, a vegan burger made with juicy plant-based patty. 

McDonald’s has already started running tests and plans to expand the product offering in conjunction with Beyond Meat in 2022. However, some analysts expressed the potential impact to Beyond Meat shares given the delay to next year.

Should you bet on Beyond Meat?

From an investment perspective, Beyond Meat shares trade at a reasonable price-sales ratio of 9.86, making the stock an intriguing option for value investors.

On the other hand, analysts expect its earnings per share to increase by more than 63% next year, thus making it an exciting option for growth investors.

The Beyond Meat stock is down more than 47% this year and over 52% over the last 12 months. Therefore, there could be an opportunity to buy the stock ahead of the EPS rebound.

Source – TradingView

Technically, Beyond Meat seems to be trading within a descending channel formation in the intraday chart. However, the stock recently bounced off the trendline support to recover from oversold conditions.

Therefore, investors could target extended gains at about $74.89, or higher at $85.28. On the other hand, if the decline continues, Beyond Meat could find support at about $56.30, or lower at 445.85.

The post Beyond Meat stock outlook as shares pull back to trim weekly gains appeared first on Invezz.