One of the most popular supplies on the market is Beyond Meat (NASDAQ :), the El-Segundo, California-based manufacturer of plant-based fake meat products.
The reasons for the popularity of the stock and the products the company generates are many. For starters, the groundbreaking company hit a cultural confection when it began selling its environmentally sustainable vegetarian products, which also do no harm to animals, in the US in 2012.
Likewise, the mid-2019 IPO was a legitimate blockbuster and is still considered one of the most successful first public offerings in history – on the stock's first day of trading, the stock was up 84% in the public eye. Beyond Meat had a market capitalization of $ 241 million on the offering, but "went public with a valuation of $ 1.5 billion", according to Forbes. Then "less than three months later, it was worth more than $ 13 billion."
Although the market cap is currently slightly lower at $ 9.8 billion, the stock has still seen explosive growth. With stocks selling above $ 150, BYND is up more than 500% since it started trading.
And because its products are manufactured in laboratories, it has vegetable & # 39; meat & # 39; a benefit during the pandemic that led to actual meat shortages due to supply chain disruptions. Additionally, regardless of COVID, plant-based meat currently accounts for only 1% of the US ground beef market, giving Beyond Meat's products ample growth potential.
The company will report its third-quarter earnings after the close later today, Monday, November 9. Analysts expect earnings per share of $ 0.05, 20% higher than earnings of $ 131.8 million, up 38% over the same period last year.
Techniques also indicate positive revenue release.
The stock price has jumped from the bottom of its bullish channel since the low of March 19, a week ahead of the company's earnings report. In the worst case scenario, experienced investors think the release will be friendly to shareholders. At best, the move was driven by "informed money".
This is a term that refers to a circle of insiders who may have access to management data who, intentionally or unintentionally, have conveyed the idea that the as-yet-unpublished release could exceed expectations.
While the 200 DMA was in line with the May-September support above $ 120, note that the price bounced off the 100 DMA where it closed on Friday as he struggled with the 50 DMA, the final resistance to the level of $ 200 the bullish channel is headed again.
Trading Strategies
Conservative traders would wait for the profit report so as not to be caught off guard by nasty surprises. However, waiting for the results to be published before trading would mean missing out at least some, or even the entire move, if the company beats or misses, which also increases exposure as the price moves further from the market. support.
Moderate traders would risk a small position before the income is released.
Aggressive traders would now go in completely, provided they understand and accept the risk. Money management becomes even more important, to limit losses, while making victories possible. Here's an example of what a trading plan might look like:
Trade Sample
Entry: $ 160
Stop Loss: $ 140
Risk: $ 20
Goal: $ 220
Reward: $ 60
Risk: Reward Ratio: 1: 3
Author's Note: This above is an example only, not the full analysis. That's in the body of the article and it could be wrong. Even if it's right, you can lose your trade depending on your timing, budget, and temperament. Hence, don't consider this trading monster a get rich quick gimmick. It is not. Successful trading can only take place with a trading plan that is personally tailored to your needs. It should be something you commit to during a period of time trying to get on the right side of the statistics. Good trade!
