Don't Give Up on Consumer Staples Stocks, Just Buy Companies Like These
Beyond Meat (NASDAQ: BYND) is a cautionary tale for investors. The stock hit a peak price just after going public and, after some volatile ups and downs, the shares are now off roughly 95% from their highs. Meanwhile, larger peers have held up much better over the same time frame while also paying dividends. Here's why the big, consumer staples stocks are a better choice for most investors.
Beyond Meat held its initial public offering (IPO) in May 2020. The new stock rocketed higher because of excitement surrounding the alternative meat space and, specifically, the Beyond Meat brand. Unfortunately, Wall Street has a bad habit of becoming enamored with a story for a little while and then moving on, particularly if the company has trouble turning potential into profits. That is exactly the problem with Beyond Meat.
Beyond Meat's financial losses, meanwhile, have been getting worse as it attempts to grow, which is not uncommon for an upstart company. However, it is also facing increasing competition from both companies small and large, including industry giant Kellogg (NYSE: K), which has long operated the Morning Star Farms brand. Hormel (NYSE: HRL), meanwhile, has been working on an alternative meat product called Happy Little Plants. And these are just two examples.
Source Fool.com
