Are Lyft and Beyond Meat Viable Investments for 2023 and Beyond? – Yahoo Finance
Speculative growth stocks might be viewed as uneasy investments going into 2023 with inflationary concerns crushing these companies in 2022. Still, the risk to reward could be favorable when such stocks are near their 52-week lows.
Two popular growth names trading near their lows are Lyft LYFT and Beyond Meat BYND. Let’s see if they will be viable investments for 2023 and beyond.
Overview
Both Lyft and Beyond Meat went public during the first half of 2019. Lyft primarily operates as a ridesharing service with multimodal transportation networks in the United States and Canada. Unlike its major competitor Uber Technologies UBER, Lyft has chosen to stick with its core ride-hailing business.
Lyft now trades at just $10 per share and 85% beneath its IPO price of $72 a share. Despite a clearer road to profitability Lyft also trades below Uber stock at the moment with UBER shares at $25.
Beyond Meat doesn’t have such a popular nemesis in its bid to expand its manufacturing, marketing, and distribution of plant-based meats. Beyond Meats sells its plant-based, vegan meats in the U.S. and internationally.
BYND began trading at $25 per share and popped to over $65 a share on the first day of trading. Beyond Meats stock now trades around $13 per share as the excitement for its alternative meat faded over the last year.
Despite the setbacks, this year’s massive drop in Lyft and Beyond Meat stock may be intriguing to many investors.
Performance & Valuation
Lyft is down -75% in 2022 vs. Beyond Meat’s -79% with both severely underperforming the S&P 500’s -21%. Over the last three years, both stocks are down over 80% since they began trading to underperform the benchmark’s 30% climb.
Zacks Investment Research
Image Source: Zacks Investment Research
Lyft’s high earlier in the year was $46.64 per share and Beyond Meat saw a high of $74 a share. LYFT and BYND are now 78% and 82% below their 52-week highs, respectively.
Since both companies aren’t profitable at the moment, we are unable to use the traditional price-to-earnings valuation metric. Even so, taking a look at their price to sales helps make sure a high premium is not being paid for these stocks, especially without profitability.
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