October 4, 2020

How to Invest in Beyond Meat

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Beyond Meat has revolutionized the plant-based meat industry. Should you bite? Read on to learn how to invest in Beyond Meat and if it's right for your portfolio.

Beyond Meat was founded in 2009 with a mission to create delicious meat substitutes while lessening global impact. Since then, their plant-based patties have gotten onto the plates of huge foodservices like TGIF, Denny's, and Carl's Jr.

Beyond Meat made a juicy splash when it went public on May 2, 2020, on the NASDAQ Exchange (ticker symbol BYND). But since then, investor appetite has been wavering.

If you're interested in getting a bite of the company, here's a step-by-step guide of how to buy Beyond Meat stock. We'll also talk about some factors to consider before investing in a company.

Disclaimer: CreditDonkey does not advise you to invest in any particular company. This article merely provides guidance on how you can invest in Beyond Meat.

1. Find the Right Online Brokerage

Beyond Meat stock is listed on the NASDAQ Exchange. Make sure the brokerage you use has access to this exchange. Just about all U.S.-based brokerages offer access to the NASDAQ market.

When choosing a stockbroker, consider these factors:

  • Minimum opening deposit
  • Commission fees and other fees
  • Level of service, account types, and other products
  • Does it support fractional shares?
  • Will you be trading actively or buy-and-hold?
  • How much research do you need?

Luckily, most major brokerages have eliminated trading fees. However, some apps may have a small monthly fee for using the service.

If you're a beginner without a lot of money to invest, fractional shares will be important. This lets you purchase just a tiny share of a stock. Not all brokers support this.

 RobinhoodM1 FinanceWebull
 Visit SiteVisit SiteVisit Site
 

Robinhood

M1 Finance

Webull

OFFER
Get a Free Stock (worth between $2.50 and $200) - Learn More

SPECIAL OFFER
Commission Free Stock Trading - Learn More

SPECIAL OFFER
Free Stock for An Initial Deposit of $100 or More - Learn More

 

Benefits and Features

Stock Trading
$0
$0
$0
Minimum Deposit
$0
$100
$0
Fractional Shares
Yes
Yes
No
Good For
Beginners; Active traders
DIY investing with passive portfolio managementExperienced investors; Active traders
 Visit SiteVisit SiteVisit Site

Robinhood: Pricing information from published websites as of 04/18/2020.

M1 Finance: Pricing information from published website as of 02/28/2020

Keep reading for our top recommended brokers to buy Beyond Meat stock.

2. Open and Fund Your Account

After you've chosen your brokerage, it's time to open an account. Usually, you need to provide your name, address, contact info, and Social Security number. There is no credit check for a regular brokerage account.

Next, you will need to deposit funds into your new account in order to start trading. To do so, you will need to link a bank account. Then you can fund your account via electronic transfer from your bank. This usually takes 3-5 business days to clear.

There are several different account types you can open (note that not all brokerage support every account type):
  • Taxable: A general purpose investment account
  • Joint: An account shared between two individuals
  • Retirement (includes Traditional and Roth IRA)
  • 529 College Savings
  • Custodial: An account set up for a minor

3. Purchase Beyond Meat Stock

Lastly, all you have to do is purchase Beyond Meat stock. Beyond Meat is found under the ticker symbol BYND. Just search for BYND in your brokerage platform and input how much you'd like to buy.

There are two types of orders you can execute to place your trade:

  • Market order: Execute the transaction now at the current market price.
  • Limit order: Set a specific price at which you wish to buy. This gives investors more control. But if the stock never hits the price you set, the trade will never be executed.

For brokerages that offer fractional shares, you can purchase just a tiny piece if you don't have enough money for a full share. This allows you to still be able to invest in Beyond Meat even if you only have $10 to invest.

Some brokerages don't support fractional shares. In that case, you will need to have enough money for at least one full share.

Don't make the buy-or-not decision purely based on the stock's current price. Instead, consider if Beyond Meat is right for your goals and risk tolerance. This comes down to what kind of investor you are.

Are you looking for passive income through cash dividends? Beyond Meat does not pay dividends and most likely will not for the foreseeable future. Is this something you want?

How much risk can you afford? Remember that stocks can be volatile, some sectors more so than others. Overall, Beyond Meat has been very volatile since its public debut. But then again, this isn't unusual for growth companies. So if you believe in Beyond Meat's place in the future of our world, it's best if you can commit to holding your investment for the long term to ride out the downturns.

Pros and Cons of Buying Beyond Meat Stock

Pros:

  • Strong revenue growth; tripled in revenue in 2019 and continues to grow
  • Partners with huge brands like Denny's, TGIF, Carl's Jr., and even Disney theme parks
  • Expanding into international locations

Cons:

  • Growing competition from Impossible Foods and larger food manufacturers like Kellogg's and Tyson
  • Unclear if it's just a fad or if Beyond Meat will gain mainstream acceptance

How to Analyze Beyond Meat's Financials

Before investing in a company, it's smart to do some research. This helps you form a more informed decision on whether the stock is a good buy or not.

It's also smart to take a look at the company's competitors. As demand for meat alternatives increases, Beyond Meat faces tough competition from Kellogg's and Tyson, both of which have launched their own line of meatless products. It's important to compare Beyond Meat's financials and growth against the competition.

Here are some things you can look at to evaluate a stock. Most brokerages will provide a summary of the main numbers for each company, as well as a chart of its historical performance.

  • Annual report: Details the company's financial performance, including income and cash flow statements, revenue, and expenses. Most companies will have this for free on their website.
  • Quarterly financial statements
  • Profit margin (%): How much profit the company gains for every dollar in sales. The higher number, the better.
  • Return on equity (%): How much profit the company generates with each $1 of the shareholders' money. The higher number, the better.
  • Price-earnings ratio (P/E): The company's current stock share price to the company's average earnings per share. Usually, a higher P/E ratio means investors are expecting higher growth.
  • Debt-equity ratio (D/E): How much debt the company has compared to its shareholder equity. Usually, a higher ratio means more risk to investors. But you have to consider the industry.

How to Reduce Risk

Any stock investment will carry some risk, even if you do your research carefully. The best way to minimize risk is by diversifying your portfolio.

In other words, don't put all your money in just Beyond Meat stock. Instead, spread out your investments into many different stocks. That way, if Beyond Meat's price falls, you'll still have others to carry you through. It's recommended you have 10-20 stocks in your portfolio for diversification.

It's also smart to invest in stocks in different sectors. Beyond Meat is in the Consumer Staples sector, which may experience more volatility. To spread out risk, also buy shares of stocks in other sectors like Financial, Healthcare, Technology, etc.

An easy way to reduce risk is by investing in index funds. These funds follow a specific market index (like the S&P 500). One fund contains hundreds of securities, so you're instantly diversified. You can have the majority of your portfolio in index funds, and then just pick a few specific companies to invest in.

If you're investing for the long term, another strategy is dollar cost averaging. This is when you spread your stock purchases over set intervals (say once a month), instead of buying in one huge lump sum at once. Sometimes you'll buy when the price is lower, and sometimes when the price is higher. This reduces the impact from the market volatility.

Best Brokerages to Invest in Beyond Meat

Here are some of our top recommended brokerages to buy Beyond Meat shares. All these brokerages have no trading commissions.

Robinhood
Robinhood is one of the most popular investment apps for beginners. It has no minimum to get started. A big benefit is that it supports fractional shares, allowing you to invest in stocks with as little as just $1. Note that Robinhood only offers individual taxable accounts.

M1 Finance
M1 Finance is a unique hybrid DIY brokerage and robo-advisor. You choose your own stocks and build your own portfolio. Then M1 will automatically manage it for you at no cost. It also supports fractional shares. The minimum to start is $100.

Stash Invest
Stash Invest is designed for new investors who need a little handholding. It guides you to pick stocks aligned with your goals and risk tolerance, but you can also choose your own stocks. You just need $1 to start investing. There is a monthly fee starting at $1/mo.

Webull
Webull also has no trading fees or minimum investment. It offers better research tools and analytics for more experienced investors. It's also a good choice for active traders with free extended trading hours. However, it doesn't support fractional shares.

Fidelity
Fidelity is a great choice if you're looking for a full-service brokerage with a wide variety of account types and other investment products. There is no account minimum. Fidelity also offers fractional shares from as little as $1.

Bottom Line

Before investing in any stock, it's smart to do research on the company to see if it's a good fit for your portfolio. After that, it's just a matter of finding the right brokerage for your needs. Remember to regularly review your investments to see how they're performing and if you need to make any adjustments to your portfolio.

Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.

CreditDonkey is a paid Affiliate/partner of Stash. Investment advisory services offered by Stash Investments LLC, an SEC-registered investment adviser. This material has been distributed for informational and educational purposes only, and is not intended as investment, legal, accounting, or tax advice. Investing involves risk.

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