We recently published the list of 11 stocks Jim Cramer is bearish on. Beyond Meat Inc (NASDAQ:BYND) ranks 11th in the list. In this article we will take a deeper look at Beyond Meat Inc (NASDAQ:BYND) and find out whether Cramer’s thesis holds any weight.
Jim Cramer in a latest program said the “bulls” want the economy to slow down, they want rate cuts as well as a strong demand so that “their companies” won’t have to worry about the yield curve and macroeconomic situation. Cramer highlighted that all of this is confusing, as it’s not possible to have a weaker economy and yet see companies make a lot of money. Cramer also pointed to the latest data showing slowing manufacturing activity. The Institute for Supply Management’s manufacturing purchasing managers index fell to 48.7 in May from 49.2 in April, while analysts were expecting the index to jump to 49.5. Cramer said that the economic activity in the manufacturing sector contracted for the 18th time in the last 19 months. Cramer said the new orders contraction in May was a “little over frightening.”
Talking about the energy sector, Cramer said that he’d buy oil and gas stocks as the economy would sooner or later begin to get back to normal. Cramer also said that it’s surprising to see many retailers, including Dick’s Sporting Goods, GAP and Best Buy, performing exceptionally well. Cramer also talked about a Wall Street analyst who “double upgraded” Best Buy shares, saying the company “might be the biggest beneficiary” of the AI PCs boom. Cramer said he agrees with this thesis.
For this article we watched several latest programs of Jim Cramer and picked 11 stocks he’s bearish on. With each stock we have mentioned hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Beyond Meat Inc (NASDAQ:BYND)
Number of Hedge Fund Investors: 16
Jim Cramer was recently asked about Beyond Meat Inc (NASDAQ:BYND) during his program on CNBC. Cramer said:
“No, don’t want to own that. Way too risky.”
Instead, Jim Cramer recommended Hormel Foods to the questioner, saying the stock is a “better play.”
Beyond Meat Inc (NASDAQ:BYND) recently came in the limelight after the return of Roaring Kitty on Twitter, which is giving yet another push to meme stocks. However, the stock is still down about 28% over the past one year. Last month, Beyond Meat Inc (NASDAQ:BYND) posted Q1 results which missed estimates on both EPS and revenue. Adjusted EPS in the period came in at -$0.72, missing estimates by $0.06. Revenue in the quarter fell 18% year over year to $75.6 million, missing the consensus forecast by $0.12 million.
Beyond Meat Inc (NASDAQ:BYND) is experiencing a declining demand across the globe. While gross margins are expected to improve amid price increases and cost optimization, analysts believe higher prices would further dent the already fledgling demand. For the second quarter, Beyond Meat Inc (NASDAQ:BYND) is expecting its revenue to come in between $85 and $90 million, which would be a 14% decline at the midpoint.
A total of 16 hedge funds tracked by Insider Monkey reported owning stakes in Beyond Meat Inc (NASDAQ:BYND) as of the end of the first quarter of 2024, down from 18 hedge funds in the previous quarter.
Beyond Meat Inc (NASDAQ:BYND) ranks 11th in Insider Monkey’s list of Jim Cramer Says You Should Not Buy These 11 Stocks.
If you are looking for an AI stock that is as promising as Microsoft but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.
Disclosure: None. This article is originally published at Insider Monkey.