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Plant-based food maker Beyond Meat Inc (NASDAQ: BYND) could see accelerated growth after securing new partnerships with PepsiCo, Inc. (NASDAQ: PEP), Mcdonald's Corp (NYSE: MCD) and Yum! Brands, Inc. (NYSE: YUM), but two close followers of the name aren't seeing it that way.
Todd Gordon: Shares of Beyond Meat are up nearly 200% since last March but the company's momentum and narrative seem to be slowing, TradingAnalysis.com Founder Todd Gordon said on CNBC's "Trading Nation."
Beyond Meat picked up some momentum in 2020 as the COVID-19 pandemic forced some meat processing plants offline, Gordon said. Now that the plants are back online and Tyson Foods, Inc. (NYSE: TSN) secured vaccines for its workers, a stock like Beyond may have been a temporary "COVID-play."
Taking a look at Beyond's stock chart shows downside support at $130 per share "but you need to break above $190 to get us going," he said.
Nancy Tengler: Citi analyst Wendy Nicholson upgraded Beyond's stock on Tuesday and the call should be "applauded" as the move followed a disappointing earnings report, Nancy Tengler, chief investment officer at Laffer Tengler Investments, also said on "Trading Nation."
Most notably, Beyond Meat was "talking down" future earnings while management lowered its sales guidance while it faces continued margin pressure. Adding to Beyond's headwinds could be higher consumer awareness over what exactly is in a Beyond burger.
"I don't think the average consumer of Beyond Meat knows that a Walmart burger has 30 less calories than a Beyond Meat burger and five times the sodium in a Beyond Meat burger and the same amount of fat," she said.
As soon as consumers start to understand that perhaps plant-based food isn't as healthy as advertised, the question is what will Beyond do "about lowering the alarms," she said.
As such, Beyond's stock looks much less attractive at more than 20 times sales versus Chipotle Mexican Grill, Inc. (NYSE: CMG) at just 6.9 times sales, she said.
Beyond Meat's stock trades around $133.94 at publication time.
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