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Beyond Meat (BYND) Surges 18.4%: Is This an Indication of Further Gains?

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Beyond Meat (BYND - Free Report) shares ended the last trading session 18.4% higher at $7. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 30.3% loss over the past four weeks.

Shares of Beyond Meat got a boost as the company highlighted five key actions to enhance its cost structure and overall operating results, alongside posting select third-quarter results and updating its 2023 guidance. As part of its actions to curtail costs, Beyond Meat is on track to lower about 19% of its our global non-production workforce; revisiting its pricing strategy to aid gross margin expansion; and increasing focus on areas with greater growth potential among others.

Third-quarter revenues are likely to be around $75 million. The company envisions gross profit to be a loss of roughly $7-$8 million. Results were affected by certain sector-specific and consumer challenges.

This plant-based meat company is expected to post quarterly loss of $0.83 per share in its upcoming report, which represents a year-over-year change of +48.1%. Revenues are expected to be $90.97 million, up 10.3% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Beyond Meat, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BYND going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Beyond Meat is part of the Zacks Food - Meat Products industry. Tyson Foods (TSN - Free Report) , another stock in the same industry, closed the last trading session 2.4% higher at $47.56. TSN has returned -3.9% in the past month.

For Tyson, the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.33. This represents a change of -79.8% from what the company reported a year ago. Tyson currently has a Zacks Rank of #4 (Sell).

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