155.30 -0.68 (-0.44%)
Pre-Market: 9:10AM EDT
|Bid||154.81 x 1100|
|Ask||155.49 x 900|
|Day's Range||153.61 - 156.93|
|52 Week Range||45.00 - 239.71|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||161.00|
Just Salad is ditching beef. The salad chain is reportedly replacing its beef offerings with Beyond Meat meatballs in as part of their 'planet over profit' mission. Bad move? Yahoo Finance's Adam Shapiro and Julie Hyman discuss with the panel.
The alternative food space is seeing huge growth this year, led by the success of Beyond Meat. Chris Kerr, chief investment officer at New Crop Capital, joins Akiko Fujita on 'The Ticker' to explain why he's not only putting his money behind Beyond Meat, but also investing in other plant-based and cell-based food companies.
Gains in U.S. stocks lost steam, with the three major indices ending mixed by the close of Monday’s session. Yahoo Finance's Myles Udland, Jen Rogers and Andy Serwer discuss.
The meteoric rise of the plant-based meat industry and leading start-up manufacturers Beyond Meat and Impossible Foods - has caught the attention of another business sector - big agriculture. Recent announcements show top grain and seed companies are jumping on the bandwagon to cash in on the booming alternative-meat trend. For example Bunge recently disclosed it's taken a small stake in Wall Street darling - Beyond Meat. Right now fake-meat only accounts for about 5% of all meat sales in the U.S. but that number is expected to triple over the next decade, according to one estimate. And it's not just Bunge, Cargill and Archer Daniels Midland are also getting in on the craze. They've either bought stakes in fake-meat start-ups, their suppliers, or are looking to sell directly to plant-based meat producers. These moves - also defensive defensive - since grain and seed companies could face lower sales to traditional meat producers, who buy their products for animal feed. So far an investment in fake-meat is yielding beefy returns. Shares of Beyond Meat are up 250 percent since their May IPO.
As WeWork begins looking for new investors ahead of its hotly anticipated IPO, the company is reconsidering its valuation, and might go public at close to $20 billion. Yahoo Finance’s Brian Sozzi and Alexis Christoforous discuss.
Yahoo Finance's Brian Sozzi speaks to Michael Hsu, Kimberly-Clark's CEO, about the company's plans to reinvent itself, the impact of the U.S., China trade war, online opportunities and more.
Just Salad, a New York City-based fast-casual chain, has added Beyond Meat to its menu, replacing grilled steak with Beyond Beef Meatballs. The plant-based alternative will be a feature of the Keto Zoodle Bowl, made with zucchini noodles, grape tomatoes and roasted balsamic mushrooms. Just Salad has a "Green Standard" sustainability initiative that aims to send zero waste to landfills by 2025 and save 100,000 pounds of plastic this year through the use of reusable bowls. Just Salad highlights data showing that beef is one of the least sustainable meat products. "The future of food is plant-based," said Janani Lee, Just Salad's chief sustainability officer. Beyond Meat has been introduced to a number of quick service and fast casual menus recently, including Dunkin' Brands Inc. and Uno Pizzeria. Beyond Meat stock has gained 9.6% over the last three months while the S&P 500 index is up 20.3% for the period.
[Editor's note: This article was originally published in August 2018. It has been revised to reflect current market trends.] The IPO success of Beyond Meat (NASDAQ:BYND) has me revisiting the world of plant-based foods and exploring how investors can take advantage of the move to meatless alternatives. Today, the global plant-based meat market is estimated to be $12.1 billion. It's expected to grow to $27.9 billion by 2025, a compound annual growth rate of 15%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhile many companies have focused on vegetarian and vegan markets in the past, it's clear that most food companies are now going after the "flexitarian" consumer: the person who still eats meat, but is opting for meatless alternatives regularly. Today, 32% of Americans identify themselves as flexitarian.As a result of this change in consumer tastes, companies have invested a total of $16 billion in plant-based meat, egg and dairy products. The "vegan wave" is now the flexitarian wave. * 7 Discount Retail Stocks to Buy for a Recession Regardless of what you want to call it, these seven companies are taking advantage of the move to meatless alternatives. And some of these stocks to buy might even make you a lot of money in the long run. Beyond Meat (BYND)Source: calimedia / Shutterstock.com By now, the Beyond Meat story is known by most investors, so I'll keep the IPO details to a minimum.The California plant-based food company went public on May 1 at $25 a share, selling 9.6 million of its stock for net proceeds of $219 million, not including the underwriters' over-allotment. The company's shareholders didn't sell any of their shares in the IPO. However, on Aug. 2, it did file a final prospectus that will see Beyond Meat sell 250,000 shares to the public along with some of its pre-IPO shareholders, selling 3 million shares of BYND stock. The company wisely waived the 180-day lock-up period for its main investors so that they can cash out a portion of their shares while they're up almost six-fold. A fundamental capital allocation principle is to sell your stock when it is expensive and repurchase it when it's cheap. While Beyond Meat's Q2 2019 net loss was $9.4 million, it did generate an operating profit of $2.2 million in the second quarter, a considerable improvement from the $7.3 million loss a year ago. Oh, and it's hard to forget revenues increased by 267% in the quarter to $67.3 million. As someone who buys their burgers quite frequently, it's not hard to see why. Tyson Foods (TSN)Source: Daniel J. Macy / Shutterstock.com A lot has happened since I last wrote about Tyson Foods (NYSE:TSN) and its foray into meatless alternatives. Some of it good, some of it bad. In 2016, Tyson made a 5% investment in Beyond Meat, the company behind the burger that has taken Canada and the U.S. by storm. It upped its stake at the end of 2017 as part of a $55 million investment round by the California-based company."We got attacked when we signed a deal with Tyson. People said I personally have blood on my hands," said Beyond Meat CEO Ethan Brown at the time. "Tyson took a big risk, too. I mean Hayes didn't get any love letters when he backed us. But I'd much rather try to get things done than throw stones, and the people at Tyson know how to move the needle."Unfortunately for Tyson shareholders, the company didn't make it to the ball, selling its shares in April for an undisclosed amount, after Tyson CEO Noel White decided the company would create its own plant-based protein line. Tyson's brand is called Raised & Rooted. It will compete with Beyond Meat. However, while its chicken nugget product will be meatless, its burger will contain Angus beef as well as pea protein isolate. According to TSN's chief marketing officer, "While most Americans still choose meat as their primary source of protein, interest in plant and blended proteins is growing significantly". * 10 Battered Tech Stocks to Buy Now The fact is, 70% of the people who eat Beyond Meat burgers are meat-eaters. Sustainable foods are the wave of the future. Kellogg (K)Source: DenisMArt / Shutterstock.com When most people think of Kellogg (NYSE:K), the first thing that likely comes to mind is cereal: Special K, Frosted Flakes, Mini-Wheats, etc. However, it has owned a vegetarian food brand called MorningStar Farms since acquiring the business in 1999. The company sells over 90 million pounds of faux meat (burgers, chicken, sausage, etc.) every year, with a third from fake burgers and the remaining two-thirds from its other products. Estimates suggest that MorningStar generates $450 million in annual revenue, about double the amount Beyond Meat sells in a year. Beyond Meat is valued at 64 times sales. If MorningStar Farms were given the same valuation, it would be worth $29 billion to Kellogg, about 50% more than the company's current market cap. It is clear that Kellogg is aware of MorningStar Farm's potential"When we [Kellogg] have spoken to people, we've seen that the desire to eat plant-based alternatives has increased in the last four years by 45%, and 53% of the Canadians we speak to are already eating meat alternatives," Kellogg Canada's VP of Marketing Christine Jakovcic recently stated. The big question is whether its management is smart enough to take advantage of the popularity of meatless products. Amazon (AMZN)Source: Shutterstock It has been a whirlwind 23 months since Amazon (NASDAQ:AMZN) stunned the world buying Whole Foods for $13.7 billion.Prognosticators of all types came out of the woodwork predicting the many changes Jeff Bezos would implement at the healthy foods grocery-store chain.One of the more sensible changes is expanding Whole Foods' delivery network. Whole Foods now provides two-hour delivery in 90 cities across the U.S.Not surprisingly, the predicted drop in prices at Whole Foods, has yet to materialize."While deeper promotional pricing on key items, incremental savings … and increased convenience for Prime Members in the first year under Amazon ownership have caught our eye as consumers, the reality is that Whole Foods pricing on a broad basket has remained largely unchanged," stated a report from Gordon Haskett Research Advisors.According to the report, $400 spent on a basket of food at Whole Foods in October 2017, now costs $398.50, producing a whopping $1.50 in savings. * 7 Stocks to Buy In a Flat Market If you're an Amazon investor, this is excellent news because the money to pay for a $15 minimum wage has to come from somewhere. Con Agra (CAG)Source: Shutterstock In my previous article about the move to plant-based foods, I discussed Hain Celestial (NASDAQ:HAIN), one of the earliest adopters of meatless and vegan alternatives. One of its companies is Yves Veggie Cuisine, founded by Canadian food entrepreneur Yves Potvin in 1985. Potvin used $5,000 of his own money, $10,000 from family and $25,000 in small-business loans to get it up-and-running. Potvin sold Yves to Hain in 2001.Potvin's next move was to create Gardein in 2003, a maker of meatless alternatives, including veggie burgers and chicken sliders, the founder's favorite Gardein product. Potvin sold Gardein in 2014 to Pinnacle Foods, now a subsidiary of ConAgra Brands (NYSE:CAG), for $154 million. ConAgra likely acquired Pinnacle Foods, in part, to take advantage of the flexitarian movement."That means the opportunity here could be in the range of $30 billion just in the U.S.," CEO Sean Connolly said recently. "And you know, there's even more opportunity internationally."If you are a CAG shareholder, Gardein is a big reason to hang on to your stock. Restaurant Brands International (QSR)Source: Shutterstock While most investors in the U.S. are familiar with Restaurant Brands International (NYSE:QSR) because of its Burger King restaurants, up here in Canada, where I live, Tim Hortons is an iconic name that RBI is trying to grow with Canadians and coffee lovers in other parts of the world, including the U.S.To compete with other fast-casual names, Tim Hortons has introduced and continues to test plant-based alternatives. In the past month, Tim Hortons has launched a Beyond Meat burger in Canada, Beyond Meat vegetarian sausage patties, and is experimenting with plant-based eggs. Early indications suggest the plant-based eggs, which are made by San Francisco food company Just, are getting rave reviews. According to a Just spokesperson, "Canada is one of the most requested markets for JUST and we're excited to be able to offer our product at select Tim Hortons locations for this market test." * 7 Deeply Discounted Energy Stocks to Buy I haven't been a fan of QSR stock -- it has a lot of debt -- but if it continues to innovate in this growing area of the restaurant and food industries, I might just have to change my tune. Impossible FoodsSource: Shutterstock In the previous slide, I discussed some of the initiatives Restaurant Brands International were doing for its Tim Hortons brand in Canada. I mentioned that the company also owns Burger King. Well, Burger King announced Aug. 1 that it is testing the Impossible Whopper, a plant-based version of its top-selling burger, for one month across all 7,200 stores in the U.S.Impossible Foods make the Impossible Whopper, the same people behind the plant-based burger that's available at all Wahlburger locations across the U.S. Burger King first tested the Impossible Whopper in 59 stores in the St. Louis area. The stores that sold this burger saw foot traffic increase by a whopping 18.5%. However, because the burger contains soy leghemoglobin, it isn't considered to be vegan.In May, Impossible Foods raised $300 million to bring its total funds raised to $750 million since its inception in 2011. Although the company is expected to go public at some point in 2020, it's not in a rush to do an IPO. Like Beyond Meat, it has a who's who list of investors, including Serena Williams, Bill Gates, Jay-Z and many others. The latest fundraise valued Impossible Foods at $2 billion. At the time of this writing, Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Internet Stocks Getting Hammered * 6 Big Growth ETFs to Buy For the Second Half of 2019 * 5 Cheap Stocks to Buy Now That the Fed Cut Rates The post 7 Stocks to Buy to Ride the Vegan Wave appeared first on InvestorPlace.
Superior fundamentals and technical action, and buying at the right time, are all part of a shrewd investing formula. Check out Apple, Lululemon, Teradyne, Copart and Ally Financial.
2019 has been a big year for initial public offerings. The year saw the arrival of some of the most anticipated IPO stocks in years, among them Uber (NYSE:UBER) stock.Indeed, it's possible that 2019 will set a record for the most capital raised, topping the $97 billion raised in 2000. WeWork and Peloton are among the well-known companies likely to go public before year-end.That said, post-IPO performance has been mixed. UBER stock, most notably, has been a flop. On the other side of the coin, a food-tech play has been one the best performers of all time, at least in the early going.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Battered Tech Stocks to Buy Now What matters at this point, of course, is not how these IPO stocks have traded so far -- but how they'll trade going forward. In some cases, big gains should continue. In others, early stumbles might look like a buying opportunity -- or a worrisome omen. After all, in many ways the IPO is the easy part. It's keeping investor attention after the offering that can be much more difficult. IPO Stocks: Uber (UBER)Source: NYCStock / Shutterstock.com Uber's IPO got off to a rocky start: Its $45 IPO price gave way almost instantly.UBER stock managed to grind back to those levels on a few occasions. But a disappointing second quarter earnings report last month sent shares tumbling. Uber stock neared $30 late last month before a recent bounce.The performance might be even worse than a 29% decline from the IPO price suggests. Uber executives reportedly wanted a $120 billion valuation ahead of the offering. The company's current market capitalization is less than half that.As I wrote last month, whether UBER stock can rebound likely comes down to one key factor: investor trust in the business model. It might seem stunning given the $58.6 billion valuation, but many investors still believe that the Uber business model will never be consistently profitable.The argument is that Uber simply has bought its growth through driver and rider incentives. To become profitable, those incentives will have to go away. But if and when those incentives go away, Uber's driver and rider pools both shrink.From that standpoint, the cheaper Uber stock price doesn't change the case all that much. If the model works -- if Uber can truly revolutionize not only the taxi industry, but food delivery and even freight -- UBER stock probably rises. If it doesn't, the stock would plunge.It's hard to know for certain which scenario plays out -- but one can at least reasonably assume that Uber stock is going to make a big move going forward. Lyft (LYFT)Source: Tero Vesalainen / Shutterstock.com For Uber's ride-hailing rival, Lyft (NASDAQ:LYFT), post-IPO trading hasn't been much better. LYFT, too, quickly dipped below its IPO price of $72. Like UBER stock, it touched an all-time low last month. And at least relative to its initial price, LYFT has underperformed, declining 38% against Uber's 29%.The broad question about the viability of the ride-hailing model obviously applies to Lyft as well. But there are two key differences in the stories.First, Lyft remains much smaller. Its revenue in the June quarter was less than one-third that of Uber. Of course, that may not necessarily be a bad thing. Lyft clearly has gained market share over the past few years, helped in part by the scandals at Uber. Continued share gains give Lyft a path to better growth going forward than Uber -- and potentially quicker profitability. * 10 Stocks to Sell in Market-Cursed September Second, Lyft doesn't have a delivery business, as Uber does with UberEats. And that might be a weakness, given investor hopes for UberEats rivals like DoorDash and GrubHub (NYSE:GRUB).Meanwhile, LYFT stock still trades at a premium to UBER stock on a price-to-revenue basis. That seems a bit surprising. Investors right now are pricing in further market share gains for Lyft, no matter how the actual market plays out. If Lyft disappoints on that front, the declines could continue. Chewy (CHWY)Source: designs by Jack / Shutterstock.com To some investors, online pet food retailer Chewy (NYSE:CHWY) looks a lot like UBER stock. Yes, growth has been impressive: 2018 revenue was eight times that generated just three years earlier.But, like Uber, bears argue that Chewy simply is creating unprofitable revenue. Indeed, well-known investor David Einhorn compared CHWY stock to that of Pets.com, one of the most infamous of the dot-com bubble stocks.That comparison seems unfair, however. Pets.com generated less than $6 million in revenue in 1999, and was bankrupt just a few months later. Chewy is on track to bring in almost $5 billion in revenue this year, has plenty of cash on the balance sheet and is tracking toward EBITDA profitability.A valuation of $13 billion-plus admittedly is concerning, particularly given that PetSmart paid one-quarter as much to acquire Chewy a little over two years ago. But as a satisfied Chewy customer, I see growth continuing and profitability arriving. If that's the case, CHWY's post-IPO sideways trading should turn into upside soon enough. Levi Strauss (LEVI)Source: Davdeka / Shutterstock.com Denim manufacturer Levi Strauss (NYSE:LEVI) returned to the public markets this year for the first time since 1985. But, at least so far, early returns have been disappointing.LEVI stock got off to a nice start, gaining 32% in its first day of trading in March. But a disappointing fiscal Q2 report undercut the stock. Friday's close of $17.08 leaves LEVI almost exactly even against its IPO price of $17.Near the lows, there's admittedly an intriguing case for LEVI stock. A forward price-to-earnings ratio of just 15.9 leaves valuation reasonable. Growth has been impressive in recent years. Denim demand seems to be holding up well, given results from the likes of American Eagle Outfitters (NYSE:AEO) and Wrangler owner Kontoor Brands (NYSE:KTB), a spinoff of V.F. Corporation (NYSE:VFC). * 7 Stocks to Buy In a Flat Market The worry, however, is that Levi's strong results heading into the IPO aren't sustainable, as a turnaround effort largely is complete. The company still has a big retail business at a time when investors want no part of retail. LEVI looks intriguing here -- but it's tough to argue that it looks compelling. CrowdStrike (CRWD)Source: Piotr Swat / Shutterstock.com Shares of cybersecurity company CrowdStrike (NASDAQ:CRWD) are heading in the wrong direction. Like so many tech IPO stocks in recent years, CRWD got off to a hot start, peaking at just shy of triple its IPO price of $34.The stock now has given back about a quarter of its value, however. Earnings and guidance both looked strong in last week's fiscal Q2 report, but the stock slid anyway.It's likely valuation is a factor. After all, this is a stock trading at roughly 40x this year's revenue guidance, even backing out cash. That's one of the highest figures in all of tech (though not, as we shall see, the highest).That said, investors have been rewarded in this market for focusing on growth over valuation. And CRWD now is back toward levels seen before its first-quarter report. In that report, too, CrowdStrike beat estimates and gave above-consensus guidance. CRWD stock jumped 15% on that release. Why sentiment has reversed isn't necessarily clear -- but if and when it turns back, CrowdStrike stock will be one of the better growth stocks out there. Zoom Video Communications (ZM)Source: Michael Vi / Shutterstock.com The story at video communications provider Zoom Video Communications (NASDAQ:ZM) sounds awfully like that of CrowdStrike.Zoom went public two months earlier, and its shares, too, initially soared. In fact, just like CrowdStrike, its stock stopped just pennies shy of tripling. CRWD since has fallen 25% from its highs; ZM stock has dropped 20%.Like CrowdStrike, strong fiscal Q2 earnings from Zoom Video last week were met by investor selling. ZM stock fell 8% on Friday, the day after its earnings release. And like CrowdStrike, the stock still looks dearly valued. ZM trades at an almost unfathomable 45x the FY20 consensus revenue estimate. * 7 Best Tech Stocks to Buy Right Now Where does Zoom go from here? It seems likely that, at least in the near term, it's going to be market factors that answer that question. As I wrote in April, ZM truly is the perfect stock for this tech market. Growth is enormously impressive, the opportunity is huge, and yet the valuation seems to incorporate all of the good news. As long as investors will keep paying up for growth, ZM stock can rebound. If and when valuation concerns arrive, however, ZM is one of the stocks most likely to crash. Luckin Coffee (LK)Source: Keitma / Shutterstock.com China's Luckin Coffee (NASDAQ:LK) has been one of the more middling IPO stocks so far this year. The IPO priced at $17, and closed its initial day of trading at $20.38. Since then, however, LK stock has gained just 1%.That said, for a Chinese consumer play, even flattish performance doesn't seem that bad. Trade war worries have led to selling pressure on a number of Chinese stocks, but LK stock has managed to hold up and keep an aggressive valuation of about 6x revenue.Even management from Starbucks (NASDAQ:SBUX), which is aggressively targeting the Chinese market, admitted at a recent conference that Luckin's growth was impressive. But Starbucks CFO Patrick Grismer also noted that Luckin's revenue growth has come from "extreme marketing and very aggressive discounts."Between valuation and what may be marketing-fueled hypergrowth, LK clearly is a high-risk play. For investors who see the selloff in Chinese stocks as overdone, however, Luckin Coffee stock could be worth that risk. Pinterest (PINS)Source: Nopparat Khokthong / Shutterstock.com Since its April IPO, Pinterest (NYSE:PINS) has performed reasonably well. The stock is up 60% from its IPO price of $19, albeit with some volatility along the way.But PINS stock has weakened of late, dropping 18% from August highs following a strong Q2 report. As with other IPO stocks, valuation concerns may be a factor. PINS still trades at about 15x 2019 revenue estimates.With year-over-year revenue growth likely near 50%, however, that valuation doesn't seem all that extreme, at least in this market. Pinterest clearly has a solid niche, though InvestorPlace's Josh Enomoto worried that its demographics might be too narrow. That proved to be a significant issue for Snap (NYSE:SNAP), which still trades below its 2017 IPO price amid concerns that its potential beyond younger customers is limited. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off With PINS heading toward levels seen before Q2 earnings, there may be a near-term trading opportunity. Longer term, the performance of PINS likely boils down to whether the company can convince investors its torrid revenue growth can continue for years to come. Slack (WORK)Source: Shutterstock Slack (NYSE:WORK), too, was a victim of a tough week for IPO stocks. WORK stock dropped as much as 16% following second-quarter results due to weak guidance. Shares recovered most of those losses -- but then fell almost 7% on Friday.To be fair, WORK isn't necessarily an IPO stock. Like Spotify (NYSE:SPOT), the company went public via a direct listing, not an actual IPO. Ignoring that distinction, however, WORK clearly has been one of 2019's worst new issues.After Friday's losses, WORK is almost back to its initial price of $26. Guidance is concerning. Competition, most notably from Microsoft (NASDAQ:MSFT), remains intense. And it's not as if the decline makes WORK cheap. The stock still trades at 25x FY2020 revenue estimates and profitability remains a long ways off.Right now, WORK looks like a falling knife. And with at least two-plus months until the next earnings report, patience is required. Beyond Meat (BYND)Source: Sundry Photography / Shutterstock.com Beyond Meat (NASDAQ:BYND) has been the best of 2019's IPO stocks. Even with a pullback from late July highs, the stock is up over 500% from its IPO price of $25.Those gains have drawn quite a bit of scrutiny. More than a few investors have called BYND a bubble. While the opportunity for plant-based "meat" seems large, Beyond Meat doesn't have that opportunity to itself. Impossible Foods, Nestle (OTCMKTS:NSRGY) and Tyson Foods (NYSE:TSN) are among those targeting the market.All that said, there is real value here -- and a real company. Growth has been explosive. Distribution continues to expand. And Beyond Meat is not a play for vegans or for health-conscious customers, but rather traditional meat eaters looking to minimize their environmental footprint or simply replace meat once or twice a week.Beyond Meat is likely to grow for years to come -- the question, at above $150, is whether it can grow fast enough to support an enormously hefty valuation.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Battered Tech Stocks to Buy Now * 7 Strong-Buy Stocks Hedge Funds Are Buying Now * The 7 Best Penny Stocks to Buy The post 10 Big IPO Stocks From 2019 to Watch appeared first on InvestorPlace.
Uno Pizzeria & Grill said Tuesday that it is adding Beyond Meat Inc. burgers and vegan cheese to menus at nine East Coast locations and rolling out the items nationwide this fall. The addition comes after talks with PETA, Uno said in a statement. Beyond Meat has recently partnered with a number of chains, including Yum Brands Inc.'s KFC and Dunkin Brands Inc. . Beyond Meat stock is down 2.2% in Tuesday trading, and down 13% over the past three months. The S&P 500 index is up 2.7% for the last three months.
With 99% of S&P 500 companies having reported numbers so far, it's safe to say that the second-quarter earnings season is essentially over. How'd it go? Very, very mixed.The numbers were broadly better than expected -- more than half of companies reported better revenue numbers than expected, while three-fourths of companies reported better profit numbers than expected. But, the beats weren't very compelling, and things are slowing -- the market's revenue growth rate in Q2 2019 was the slowest since Q3 2016, while the profit growth rate was negative.Broadly, then, it wasn't a great earnings season. But, it wasn't an awful one, either.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHaving said that, the second-quarter earnings season was awful for a handful of stocks, which bucked the broader market trend and reported worse-than-expected second-quarter revenues and profits. Many of these stocks were hammered, considering the sentiment backdrop during Q2 wasn't great.Which stocks got killed this earnings season? And will they remain in a downtrend for the foreseeable future? * 10 Healthcare Stocks to Buy Despite the Headlines Let's answer those questions by taking a deeper look at seven stocks that flopped this earnings season -- all of them are down more than 20% since they reported earnings -- and see whether these stocks have any bounce-back potential. Worst Stocks That Flopped This Earnings Season: Ulta (ULTA)Source: Jonathan Weiss / Shutterstock.com Loss Since Earnings Report: 30%It wasn't a kind earnings season for retailers, as trade war woes broadly weighed on management sentiment and resulted in depressed back-half 2019 outlooks. But, for cosmetics retailer Ulta (NASDAQ:ULTA), the second-quarter earnings season was particularly ugly.In late August, Ulta reported second-quarter numbers that missed everywhere. The headline revenue and earnings numbers both missed expectations. Comparable sales growth in the quarter came up shy of estimates. Margins fell short of estimates, too. The full-year revenue growth, comparable sales growth, margin and profit guides were all cut in a big way -- to well-below consensus marks.In response to the across-the-board miss quarter, ULTA stock plunged -- by about 30%. It now trades at its lowest levels since Christmas Eve 2018, when the broader indices were flirting with bear market territory.Can the stock rebound from these depressed levels? I think so. The secular growth drivers in the cosmetics industry remain favorable, supported by Selfie Generation consumers who are obsessed with looking good. Ulta still dominates this industry. The only problem is that after several years of red-hot growth, the industry is cooling off in 2019. Historically speaking, such cooling off periods are never that big, and never last that long.As such, the macro backdrop will improve here. Probably by 2020. When it does, Ulta's numbers will bounce back, and ULTA stock will rebound in a big way. Uber (UBER)Source: NYCStock / Shutterstock.com Loss Since Earnings Report: 28%Ride-sharing giant Uber (NYSE:UBER) has been a public company for about three months now. Over those three months, not only did UBER not get an IPO honeymoon, but the stock has actually been through a tremendous amount of pain -- headlined by the stock's huge plunge following its latest earnings report.In early August, Uber reported second-quarter numbers that missed estimates across the board. The headline revenue and profit numbers missed Street estimates. So did bookings and monthly active platform consumers. Perhaps more importantly, top-line growth metrics (revenue growth, bookings growth and user growth) all slowed dramatically from Q1, while core platform margins actually deteriorated year-over-year.In other words, Uber put up a quarter that both missed estimates by a wide margin, and illustrated that the company's growth trajectory is flattening out while margins aren't improving.That's a losing combination. Thus, it should be no surprise that since the Q2 print, UBER stock has shed about 30%. * 7 Automotive Stocks to Buy Now Is there rebound potential here? Yes. But, only in the long run. Ride-sharing still projects as the next big thing in the transportation world, and at scale, the vast majority of transportation will be done through ride-sharing. At scale, then, Uber will be a very big company -- much bigger than it is today. But, Uber has lost its stride at the moment. Until the company gets that winning stride back through reinvigorated growth or improving margins, UBER stock will have a tough time rebounding from here. Beyond Meat (BYND)Source: calimedia / Shutterstock.com Loss Since Earnings Report: 27%Once one of the hottest stocks on Wall Street, plant-based meat company Beyond Meat (NASDAQ:BYND), went ice cold this earnings season after the company reported second-quarter numbers that -- while good -- didn't quite live up to lofty investor expectations.In late July, Beyond Meat reported second-quarter numbers that were actually pretty good. Revenues rose nearly 300% year-over-year and topped Street estimates. Margins improved meaningfully, and came in well ahead of expectations. The full-year revenue and adjusted EBITDA guides were really good. But, in the earnings report, Beyond Meat also announced a secondary offering that spooked investors -- mostly because the offering was priced at $160 per share, while the stock was trading above $200 per share at the time.In other words, while Beyond Meat did report blowout second-quarter numbers, management also confirmed in that report through a secondary offering that above $200, BYND stock was overvalued.The stock has naturally sold off ever since, but has found solid footing in that $150 to $160 range, or right around where the secondary offering was priced. That's a healthy sign. It's also a healthy sign that ever since the Q2 earnings print, the plant-based meat craze has only gained more momentum with more fast-casual chain contract wins.Broadly, then, Beyond Meat's secular growth narrative remains very robust. The post-Q2 earnings sell-off was just a natural correction following a parabolic run higher. After the stock consolidates in the $150 to $160 range for a few more months, BYND stock should be ready to resume its secular march higher. This is a long term winner. Etsy (ETSY)Source: kenary820 / Shutterstock.com Loss Since Earnings Report: 27%Another red hot stock that went ice cold this earnings season is arts and crafts e-commerce marketplace Etsy (NASDAQ:ETSY).In early August, Etsy reported second quarter numbers that were mixed. Earnings topped expectations, and the full-year revenue and volume growth guides were both lifted. At the same time, though, revenues missed expectations, and the full-year EBITDA margin guide was cut. The big problem is that heading into the print, ETSY stock was priced for perfect, not mixed (the stock traded at over 60-times forward earnings at the time).Thus, mixed results produced a huge sell-off in ETSY stock which has lasted ever since. Since that early August earnings report, ETSY stock has shed nearly 30%.Can the stock rebound from here? I think so. This is still a big growth company (33% revenue growth projected this year) supported by secular e-commerce adoption drivers and protected by a moat of over 2 million active sellers and 40 million active buyers. Plus, there are some pretty big growth initiatives that are just starting to rollout, including free shipping on orders over $35 and an in-platform ads business for its sellers. Sure, these growth initiatives cost money to get going (hence the reduced margin guide for 2019), but they are ultimately very additive to the long-term growth narrative. * 7 Low-Risk Mutual Funds to Buy Now Thus, I think ETSY stock can and will bounce back from here. Technical support may not arrive until the mid-$40's, so investors may want to wait for that support to show up. But, in the long run, this stock has the firepower to run back toward $60-plus prices. Under Armour (UAA)Source: 2p2play / Shutterstock.com Loss Since Earnings Report: 33%Yet another red-hot stock that went ice cold this earnings is athletic apparel brand Under Armour (NYSE:UAA).In late July, Under Armour reported second quarter numbers that simply weren't that good. Sure, earnings topped expectations. But, revenues missed expectations, and revenue growth was yet again a meager 3%, while North American revenues continued to decline. Also, sure, gross margins were up big, but they were supposed to be up big, and the company didn't drive any positive operating leverage, so operating margin expansion wasn't as big as investors were hoping for.Big picture, Under Armour's second-quarter print confirmed that this is a slow growth company with margins that are gradually moving -- not rushing -- higher. Heading into the print, UAA stock was priced for so much more. That's why the stock has collapsed more than 30% since the print.Will the stock rebound from here? Yes. For three big reasons.First, under $20, UAA stock is now undervalued relative to its long-term growth potential. Second, the stock is running into some major technical support levels, which have historically signaled a bottom in the stock before a substantial recovery rally. Third, trade war tensions, which have weighed on the entire athletic apparel sector for the past month, should ease going forward from here, providing an upward sentiment lift for UAA stock. iRobot (IRBT)Source: Grzegorz Czapski / Shutterstock.com Loss Since Earnings Report: 34%Consumer robotics leader iRobot (NASDAQ:IRBT) both manufactures a lot of product in China and sells a lot of product into China. As such, this company finds itself at the epicenter of the trade war, so ever since the trade war escalated to a new level back in April 2019, IRBT stock has been under tremendous pressure.That tremendous pressure continued this earnings season. In late July, iRobot reported second-quarter numbers that comprised slowing revenue growth trends and a big full-year 2019 revenue guide cut, which implied that this slowdown is set to continue for the foreseeable future. IRBT plunged after the report, and because trade relations have only deteriorated since then, it has continued to drop into early September.From late July to early September, IRBT stock has dropped 34%. The stock is now more than 50% off its late April 2019 highs.Is a big rebound coming? In the long run, yes; iRobot is the leader in the secular growth consumer robotics space, which is on the cusp of going mainstream. Over the next few years, robotic vacuum cleaners, lawnmowers, car cleaners etc. will become the household norm, and many of those products will be iRobot products. Thus, in the long run, there's a ton of growth potential here, the sum of which should drive IRBT stock higher from today's depressed prices. * 10 Stocks to Sell in Market-Cursed September But, this stock also has a ton of trade war exposure, and until tariffs go away or get reduced, it's tough to see investors wanting to "buy the dip" in IRBT stock. So long as "buy the dip" appetite remains depressed, IRBT stock will remain depressed, too. Canopy Growth (CGC)Source: Jarretera / Shutterstock.com Loss Since Earnings Report: 24%Pot stocks had a really tough time this earnings season amid relatively sluggish revenue growth and depressed margins, and the leader of the pack -- Canopy Growth (NYSE:CGC) -- was no exception.Canopy reported first-quarter numbers in mid-August. They were nothing short of awful. Revenues and profits missed by a mile. Margins dropped big year-over-year. Kilograms sold grew only marginally quarter-over-quarter. Revenues actually declined sequentially. The cash balance -- one of the most attractive features of Canopy relative to other pot stocks -- dropped 30% from a year ago.All in all, it was not a good report. Broadly speaking, it confirmed that growth is slowing, profits are still a long way out, and cash burn is a problem that isn't going away any time soon. CGC stock plunged in response. It has stayed in sell-off mode ever since, and today it trades nearly 25% below its Q1 earnings price.Will CGC stock bounce back? Long term, yes. Given its huge growing capacity, global distribution, big balance sheet and Acreage deal to enter the U.S. market, Canopy still projects a leader in the global cannabis market at scale -- and that positioning ultimately implies that Canopy could one day be a $50 billion to $100 billion company. Thus, in the long run, there's huge upside potential here.But, near-term pain will persist for the foreseeable future. Put simply, other cannabis companies are making more progress than Canopy at the current moment, on both the top and bottom-line. Canopy needs to step up its game and regain its competitive edge before investors take a chance on buying what has turned into a falling knife.As of this writing, Luke Lango was long BYND, UAA and CGC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post 7 Worst Stocks That Flopped This Earnings Season appeared first on InvestorPlace.
Beyond Meat (NYSE: BYND) has cooled off a bit after its incredible post-IPO run. BYND stock has been trading in a broad range of between $140 and $240 for more than two months now.Source: Sundry Photography / Shutterstock.com Beyond Meat stock bulls are quick to point to the seemingly constant string of news headlines about new deals and partnerships. Investors will tell you that plant-based meat is spreading like wildfire. The growth trajectory is astounding, they say.Even after a major pullback from $240, BYND stock is still up more than 400% from its IPO price. It has quintupled its market cap in about four months.InvestorPlace - Stock Market News, Stock Advice & Trading TipsI'm not a fan of buying the stock, and it has nothing to do with the outlook for what I like to call meatless meat. It has to do with what I see is Beyond Meat's biggest problem: variant perspective. Expectations MatterAlmost all investors watch quarterly earnings reports closely. Why? Good quarterly earnings numbers and revenue growth can send a share price soaring. Bad numbers can send it plummeting. But what are "bad" earnings? What is "good" revenue growth? Most companies would be pleased with 15% revenue growth. Netflix (NASDAQ: NFLX) investors would be disgusted. * 7 Stocks to Buy In a Flat Market It's not actually the numbers that move the stock. It's how those numbers vary from consensus expectations. Consensus expectations are typically seen as the average projections of all the Wall Street analysts covering the stock. It doesn't matter if earnings were up 50% from a year ago. If analysts were expecting 60%, the stock will likely drop. What Is Variant Perspective?Former Kase Capital hedge fund manager Whitney Tilson recently said that the easiest thing in the world to do is figure out what a company is likely to do next. Simply log onto CNN or Bloomberg and look at consensus analyst estimates, ratings and price targets.The problem is that expecting what everyone else is expecting and being right likely won't earn you much money in the market."Your challenge is very simple - yet also very difficult: find stocks in which the performance of the business turns out to be far different than the consensus view today (either outperformance if you're long or underperformance if you're short)," Tilson said.This key to investing is called "variant perspective." It's an idea about a stock that is different than what the average person thinks. To outperform the market over time, you need to do more than just predict the future. You need to see the future differently than the average person by having a variant perspective. TSLA Versus BYND StockI like to use Tesla (NASDAQ: TSLA) as an excellent example of the importance of variant perspective. While Tesla has had some growing pains along the way, it has generated some incredible growth numbers. Revenue was up 26% in 2015, 73% in 2016, 67% in 2017 and 82% in 2018. Those numbers represent the type of growth investors salivate over. Yet over the past five years, TSLA stock is down more than 21% overall.Back in 2014, Tesla investors saw the EV boom coming. Then it arrived. The problem is that everyone else saw it coming too. The Tesla investors from 2014 had no variant perspective on the stock. Variant Perspective and BYND StockBeyond Meat's consensus expectations have changed a lot since its IPO. Just look at its share price. The danger lies in how in the world the company can exceed the extremely high bar the market has set over the next several years.BYND stock investors talking about all the deals announced in the past couple of months should save their breath. Everyone knows about those deals already. In fact, the 400% gain in the share price suggests everyone assumes the new deals will keep rolling in. Yes, the meatless meat business is booming. Yes, it will continue to boom. That is now the consensus expectation.Beyond Meat reported 287% revenue growth in the second quarter. Analysts are probably looking for more of the same next quarter. I know I am, and I'm a Beyond Meat skeptic.If I could go back in time and tell 2014 Tesla investors one thing it would be this-everybody knows already. You're not the only market guru who figured out EVs are coming. The big BYND stock price rally earlier this year reminds me a lot of the TSLA stock rally in 2013. That rally represented everybody figuring it out.The same thing just happened with Beyond Meat. If investors expect better results over the next five years than Tesla investors have gotten in the last five, Beyond has a very high bar of expectations to clear. I wouldn't bet on it happening.As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post The Problem with BYND Stock Is Too Much Success Is Priced In appeared first on InvestorPlace.
In another possible sign investors may be souring on high-priced IPO stocks, the parent of soon-to-go public WeWork is considering cutting its valuation to below $20 billion. Some investors are reportedly ...
Stocks suffered a terrible August with the Dow, S&P 500, and Nasdaq losing 1.7%, 1.8%, and 2.6%, respectively. If you didn't take the time this past month to figure out which stocks to sell, you might want to do that before too long. September is historically the worst-performing month on the calendar. Over the past 82 years, the S&P 500 and Dow have averaged a 1% decline in September. Even worse, when the S&P 500 falls by more than 1.5%, as it did this past August, the index tends to fall by 0.9% in September.According to Kensho, an analytical tool used by Wall Street to generate trading profits based on market history, the S&P 500 loses ground 48% of the time in September, leaving no doubt that if you're going to take profits, September is an excellent time to do it. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy In a Flat Market As if what I've stated isn't enough to get you thinking about which stocks to sell, since 1950, September turns out to be the worst month in a pre-election year. Well, here we are, smack dab in the early stages of a 2020 election cycle, which points to another miserable month in the markets. If you're the conservative type, here are 10 stocks to sell that have made significant gains so far in 2019. Stocks to Sell: Beyond Meat (BYND)Source: Sundry Photography / Shutterstock.com Do I think Beyond Meat (NASDAQ:BYND) is a bad stock to own for the long term? Absolutely not. However, when a stock's gained more than 500% in a little over four months as a public company, if you bought the plant-based meat company's shares in the IPO, taking some profits off the table isn't the worst idea in the world.I know it's tempting to buy after BYND stock fell precipitously in August, losing 30% of its value from its late-July, 52-week high of $239.71, but given the likelihood September is going to be another losing month in the markets, discretion is the better part of valor. That's especially true if you consider that the competition continues to heat up in the plant-based food industry. Furthermore, Beyond Meat doesn't make money on a GAAP basis and will barely break even on a non-GAAP, adjusted EBITDA basis in fiscal 2019. Of course, if you're a buy-and-hold investor, the fact that selling now would trigger a higher capital gains tax due to selling within a year means you might want to take some cash and buy more in October should it fall into the $140s. Pilgrim's Pride (PPC)Source: Lori Martin / Shutterstock.com It seems that plant-based meats aren't the only type of protein that's popular at the moment. Pilgrim's Pride (NASDAQ:PPC), which is one of the world's largest chicken producers, has gained 106% year to date, a fantastic performance that has brought its stock back to life after several years in the doldrums. What did it do to gain this momentum? In the simplest terms, it has made more money in 2019. On July 31, Pilgrim's Pride announced Q2 2019 earnings. Through the first six months of this fiscal year, revenues fell by 0.3% to $5.57 billion. However, on the bottom line, it generated a six-month operating profit of $416.6 million, 7.7% higher than a year earlier. It wasn't so much the gains in the first six months, but rather what happened in the second quarter, which saw operating income and adjusted EBITDA increased by 58.1% and 34.7%, respectively, on a 0.2% increase in sales. * The 8 Worst Stocks to Buy Before the Trade Turmoil Cools Off Mexico and U.S. operating margins increased dramatically in the second quarter offset by middling results from its European operations. Expect it to continue making acquisitions outside the U.S. to grow its global footprint. PagSeguro Digital (PAGS)Source: Teerasak Ladnongkhun / Shutterstock.com PagSeguro Digital (NYSE:PAGS) is a Brazil-based payment services company that went public in January 2018 at $21.50 a share, raising $2.3 billion from its IPO. Losing ground through the latter half of 2018, PAGS has been on fire in 2019, up 171% year to date.As IPOs go, it's the most successful Brazilian public offering in many years, but it has also done nicely versus its software peers, which gained 27% over the same period. It just goes to show you that fintech success isn't just for American firms.The company's five pillars of growth have delivered payment processing to small businesses without the need to open a bank account, helping to grow the Brazilian economy. The company finished the second quarter ended June 30 with 9.4 million active users generating 39% revenue growth year over year, along with 42% growth in net income.A lot is happening in South American business these days and PagSeguro Digital is an integral part of the change taking place. Long-term, I'd hang on to its stock, but it's hard not to take some profits off the table after less than two years as a public company. NovoCure (NVCR)Source: Shutterstock I have to be honest; I had never heard of NovoCure (NASDAQ:NVCR), an Israel-based company that was founded in 2000 to create a new way to treat solid cancer tumors. In 2011, NovoCure received FDA approval for Optune, its treatment of recurring glioblastoma. Four years later it went public in October 2015 at $22 a share. Up 283% since its IPO, NovoCure has moved on to get FDA approval for two more drug treatments. In the second quarter ended June 30, NovoCure reported that it had 2,726 active patients using Optune, with 1,846 in the U.S. As a result of these patients, it generated $160 million in revenue in the first six months of fiscal 2019, 40% higher than a year earlier. On the bottom line, it lost $13.4 million in the first half of the year, one-third the amount it lost a year ago. * 7 Industrial Stocks to Buy for a Strong U.S. Economy Although it's getting close to profitability, the fact that it's gained 149% year to date suggests it's ready for a cool down. TopBuild (BLD)Source: Shutterstock Low interest rates have helped TopBuild (NYSE:BLD) gain more than 100% in 2019. The Fed's recent cut helped the installer and distributor of insulation and building products. In the past month, it's gained more than 1.5% while the markets as a whole have barely moved. Investors like stocks that benefit from interest rate cuts. TopBuild is in that category. In the second quarter ended June 30, TopBuild grew its sales by 8.9% to $660.1 million with a 260 basis-point increase in its gross margin to 26.5%, which led to an operating profit of $76.0 million, 73.9% higher than a year earlier. In fiscal 2019, it expects revenue to be at least $2.61 billion with adjusted EBITDA of $345 million. At present, everything about TopBuild's business is chugging along. However, if you were one of the lucky Masco (NYSE:MAS) shareholders who got one share of TopBuild for every nine shares of the parent in the June 2015 spinoff, you might want to take some profits because it's been nothing but capital gains over the past four years. Not to mention the housing market is starting to show signs of weakness which is always bad for companies like TopBuild. Carvana (CVNA)Source: Carvana There's no question Carvana (NYSE:CVNA), the e-commerce platform for buying and selling used cars, is having a strong year in the markets up more than 165%. If you own CVNA stock, the fact that it made $3,175 in gross profits per vehicle in the second quarter, 46% higher than a year earlier, has got to help soften the blow from a $64.1 million loss. There's no question that Carvana's revenue growth is through the roof. In Q2 2019, it grew sales by more than double to $986.2 million, expanding its footprint to 137 markets across the U.S.While the company continues to scale its business, analysts are increasingly concerned that its pathway to profitability isn't going to be nearly as quick as some think it is. * 7 Well-Positioned Oil Stocks in Today's Trading Environment Between 2019 and 2020, Carvana is expected to burn almost $1 billion in cash, which means it's likely going to need to raise more debt or equity by the end of next year. It might be a disruptor, but to truly change the used car business, it's got to remain solvent. Shake Shack (SHAK)Source: JHENG YAO / Shutterstock.com I can remember when the purveyor of burgers was doomed to fail. Now, Shake Shack (NYSE:SHAK) is back with a vengeance up 137% year to date and 44% on an annualized basis over the past three years. Back in June 2016, InvestorPlace Assistant Editor John Devine had this to say about SHAK:"SHAK stock trades at 107 times earnings, 66 times forward earnings, 6.7 times book and at a 3.4 PEG ratio. The traditional metrics are screaming that this stock is overvalued. With a profit margin barely scraping the 2.5% level, why is Shake Shack trading like a cloud computing company?"Hey, it was easy to pick on SHAK back then. It had been a public company for less than two years and was focusing on expansion rather than profits. As a result of this expansion, Shake Shack is outperforming McDonald's (NYSE:MCD) when it comes to their stocks. However, not everyone is convinced the stock's performance will continue unabated. "We estimate new units continue to weaken sequentially both on the top-line and especially on the contribution margin line, are contributing an estimated 90-200 bps pressure on consolidated RLM in 2019. This pressure should continue for the foreseeable future," said industry analyst John Zolidis recently. He doesn't see much upside left. Given the three-year run SHAK stock has been on, now might be the perfect time to take some profits. Roku (ROKU)Source: Michael Vi / Shutterstock.com Of all the tech stocks losing money, Roku (NASDAQ:ROKU) could very well be my favorite stock. It's got a great business model that I know is going to generate boatloads of profits someday. In the meantime, the video-streaming platform gained 459% year to date, with almost 15% of those gains coming in the past month when markets have been dormant or extremely negative. It is due for a correction.However, if Roku continues to deliver innovative products like its $180 Roku Smart Soundbar, expected to launch in October, it's going to be difficult to keep ROKU stock down. If you've owned ROKU for more than a year, I'd consider taking some profits, so that you can repurchase it after its next correction. It has had two corrections of more than 20% in both 2019 and 2018, with all of them happening in the first three months of the calendar year. * 7 Cheap Semiconductor Stocks to Buy Now History is likely to repeat itself. Snap (SNAP)Source: ArthurStock / Shutterstock.com I loved the headline of my InvestorPlace colleague Will Healy's latest article about Snap (NYSE:SNAP). "The Rally of Snap Stock Could Disappear Faster Than a Snapchat Photo," which pretty much sums up the subject of his article. "At its current levels, SNAP stock has become dangerous to own. Traders should sell Snapchat stock before their investment dollars disappear like their Snapchat photos," Healy wrote Sept. 5. Like Healy, I'm perplexed by the popularity of SNAP stock; although it's possible it could hit $20 in 2019, I believe a correction in 2020 is all but inevitable. If you've made money speculating on SNAP stock, now is the time to get out, while you still have profits to count. LivePerson (LVPN)Source: Shutterstock The history of LivePerson (NASDAQ:LVPN) is one of perseverance. The company started in 1998, helping large businesses provide online customer service through their LivePerson eCRM platform. Several acquisitions later and an IPO in 2000, it has grown to become a cloud-based company with over 18,000 customers and an increasing focus on AI.As a result of its move to the cloud and AI-related services, LivePerson's stock has jumped by more than 111% in 2019 and 70% on an annualized basis over the past three years.And yet the company's sales over the past three years have grown by just 4.5% from $239 million in 2015 to $249.8 million in 2018. At the same time, it has racked up cumulative losses of $69 million. The fact is, LivePerson hasn't made money since 2012 when it earned $6.4 million on $133 million. If it doesn't make money on a GAAP basis soon, investors are going to run away in droves. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 3 Artificial Intelligence Stocks to Buy * 7 Industrial Stocks to Buy for a Strong U.S. Economy * 3 Beaten-Down Bank Stocks to Buy and Hold for the Long Term The post 10 Stocks to Sell in Market-Cursed September appeared first on InvestorPlace.
Talk about a horrendous trade by millennials. Here's new data from online brokerage house TD Ameritrade revealing top stocks bought by millennials in August.
Investors might be wondering what Beyond Meat (BYND), Kellogg (K) and Restaurant Brands International (QSR) all have in common. The answer is that each wants to control the plant-based meat segment of the market.With Barclays predicting that plant-based product sales will reach $140 billion in the next decade, it’s no wonder food companies are expanding their product offerings to include meatless alternatives. Bearing this in mind, we used the TipRanks Stock Comparison tool to see which stock serves up the most compelling investment opportunity. Let’s get started. Beyond Meat Inc. (BYND)It’s no question that Beyond Meat has disrupted the vegan food market. The first plant-based meat producer has skyrocketed 136% since its May 2 IPO. BYND already boasts Dunkin (DNKN) and Kentucky Fried Chicken (YUM) as partners, with its products also appearing in many grocery stores. That being said, analysts aren’t convinced that BYND has what it takes to outperform in the long-run.The fact is, plant-based meat isn’t a patented technology, with several companies following BYND’s lead by adding their own vegan meat options. Kroger (KR) announced on September 5 that it was launching plant-based deli meats and sausages under its Simple Truth brand. One analyst argues that its fast-growing retail presence, attractive placement and favorable media impressions won’t be enough to shield BYND from the competition. D.A. Davidson’s Brian Holland states that its larger competitors have the resources and pricing power that BYND just doesn’t have. It doesn’t help that BYND has a valuation problem. “We estimated EV/Sales on fiscal 2024 estimates of $1.2089 billion and discounted back. This multiple is already a 50% premium to Beyond Meat's Growth Staples peers and compares to the stock's current multiple of 29.5 times NTM revenue,” Holland noted. Based on all of the above factors, the analyst initiated coverage with a Sell and set a $130 price target on September 5. He thinks that share prices could drop 16% in the next twelve months. All in all, Wall Street analysts deem BYND a ‘Hold’. Its $124 average price target indicates 20% downside potential. Kellogg (K)Kellogg is one of the many companies trying to take market share from BYND. The company announced on September 4 that it is launching its plant-based meat, Incogmeato, in early 2020. These burgers will be released under the MorningStar brand and are different from its existing veggie burgers as they are fully plant-based. K will also start selling plant-based chicken nuggets and tenders.In addition to its foray into the plant-based food space, Kellogg has pivoted away from its legacy cereal-first approach with it shifting focus towards the snack segment of its business. In January, the company started selling Cheez-It Snap’d as well as launched Pop-Tart Bites and Rice Krispie Treat Poppers in 2018. Not to mention the company already added protein bars to the product lineup with its $600 million acquisition of RXBAR in 2017.While some analysts think K's upside has already been factored into the share price, Goldman Sachs analyst Jason English argues that these positive developments could drive a profit margin improvement as well as stronger organic sales. “A number of changes have occurred at the company in recent years that we believe will sustain a faster growth trend at K than the company has been able to historically achieve; primarily a strategic pivot to snacks (vs. its legacy cereal-first approach) and completed M&A (albeit at lofty valuations) which has bolstered its EM exposure,” he explained. As a result, he upgraded the stock from a Hold to a Buy while raising the price target from $58 to $72 on September 6. The new price target demonstrates his confidence that shares could surge 12% over the next twelve months. Wall Street isn’t as bullish on Kellogg. 4 Buy ratings versus 7 Holds and 2 Sells assigned over the last three months add up to a ‘Hold’ analyst consensus. Its $65 average price target suggests 2% upside potential. While this upside is minor, K still boasts better growth prospects than BYND. Restaurant Brands International (QSR)The last stock on our list is known as the force behind Burger King, Tim Hortons and Popeyes, with it also hoping to ride the vegan wave.In the beginning of August, Burger King launched its plant-based burger at over 7,000 U.S. locations. The Impossible Whopper is the product of its partnership with Impossible Foods, a top Beyond Meat rival. According to Cowen & Co. analyst Andrew Charles, the Impossible Whopper could drive 6% same-store sales growth in the third quarter at Burger Kings located throughout the U.S. The plant-based burger is convincing consumers to spend more as orders with the Impossible Whopper cost $10 or higher, compared to Burger King's average check of $7.36 in 2018. “While data is limited, our check suggests Impossible Whopper is attracting new and lapsed users to the brand that skew younger and affluent, as well as driving high rates of repeat orders," Charles added. Investors have more reason to be excited about QSR thanks to its new Popeye’s chicken sandwich launch. After its widely successful August 12 launch left several locations sold out, management stated it blew through the inventory of chicken filets a month ahead of schedule thanks to intense social media buzz. All of this played into Charles’ conclusion that QSR is poised to soar. As a result, the five-star analyst reiterated his Buy rating and $85 price target on August 29. He believes shares could gain 13% over the next twelve months.Wall Street appears to mirror the analyst’s sentiment. QSR boasts a ‘Strong Buy’ analyst consensus and an $82 average price target, implying 8% upside potential. The Bottom LineThe results are in and according to Wall Street analysts, QSR is the top pick. While the Stock Comparison tool shows that BYND's gain was the largest, QSR is the long-term winner as it comes out on top in terms of both analyst consensus as well as upside potential. Find Wall Street’s most loved stocks with the Top Analysts’ Stocks tool
Benzinga has examined the prospects for many investor favorite stocks over the past week. Bullish calls included what may be a couple of surprises this past week. Bearish calls included a few recent IPOs ...
Beyond Meat stock fell as an analyst sees a smaller potential market for fake-meat products. Competition also is growing in plant-based meat alternatives.