Please ensure Javascript is enabled for purposes of website accessibility

These 2 Nasdaq Winners Are Getting Some Wall Street Love Monday

By Dan Caplinger - May 24, 2021 at 10:19AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Markets are performing well, and these stocks are helping lead the way.

Wall Street got the week off to a strong start on Monday morning, as major market benchmarks moved higher right out of the gate. Leading the way higher was the Nasdaq Composite (^IXIC 0.00%), which was up nearly 1.5% as of 10:30 a.m. EDT.

After a difficult time last week, some investors seemed to believe that the Nasdaq was simply due for a rebound. However, also helping were some positive comments from professional stock analysts, as they helped shares of Beyond Meat (BYND -2.70%) and Ollie's Bargain Outlet Holdings (OLLI -0.38%) move higher early Monday. Below, we'll look more closely at what's causing these two Nasdaq stocks to be winners.

Here's the beef

Beyond Meat saw its stock rise more than 8% Monday morning. The maker of plant-based meat substitutes earned positive comments from a prominent set of stock analysts, bolstering confidence in the company.

Hand holding package of Beyond Meat's Beyond Burger.

Image source: Beyond Meat.

Analysts at Bernstein boosted their views on Beyond Meat, making a rare upgrade all the way from underperform to outperform. Usually, a stock with an underperform rating will first get upgraded to market perform or neutral rather than proceeding all the way to the equivalent of a buy rating. Bernstein also placed a $130-per-share price target on the stock.

Bernstein believes that after a decline in its stock price, Beyond Meat is well positioned to take advantage of more favorable trends moving forward. In particular, as the pandemic comes more under control, restaurant sales could recover even more sharply, and that would bode well for the partnerships that Beyond Meat has with key restaurant chains like McDonald's and Yum! Brands .

Investors got a reminder of the importance of plant-based foods when milk maker Oatly (OTLY -0.73%) went public last week. Beyond Meat has a longer leadership role in the space, and a recovery could help it get back on track fully.

Is Ollie's a bargain?

Elsewhere, shares of Ollie's Bargain Outlet were higher by 2%. The discount retailer didn't manage to get a double upgrade, but it still got favorable comments from a well-known Wall Street giant.

Morgan Stanley upgraded Ollie's stock from underweight to equal weight. The analysts seemed to hinge their views largely on the declines that Ollie's has seen over the past month, losing almost 20% of its value. That makes the risk-reward proposition on Ollie's stock more favorable, although even with the pullback, Morgan Stanley sees a fair amount of risk involved with the company.

Ollie's has managed to keep its business moving in the right direction. In 2020, despite the difficult environment, sales climbed 28% from 2019 levels. Comparable sales managed to rise 15.6%, and that pushed adjusted net income higher by more than 60% year over year.

Not everyone is convinced about Ollie's future prospects, as a couple of other Wall Street analysts have cut their price targets on the retailer's stock over the past month. Nevertheless, as the economy moves forward from the pandemic, investors are optimistic that Ollie's will keep resonating with shoppers and help bolster future results as well.

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Beyond Meat, Inc. and Ollie's Bargain Outlet Holdings. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Beyond Meat Stock Quote
Beyond Meat
BYND
$35.70 (-2.70%) $0.99
NASDAQ Composite Index (Price Return) Stock Quote
NASDAQ Composite Index (Price Return)
^IXIC
$13,047.19 (0.00%) $0.00
McDonald's Corporation Stock Quote
McDonald's Corporation
MCD
$265.44 (1.24%) $3.26
Yum! Brands, Inc. Stock Quote
Yum! Brands, Inc.
YUM
$118.24 (0.07%) $0.08
Ollie's Bargain Outlet Holdings, Inc. Stock Quote
Ollie's Bargain Outlet Holdings, Inc.
OLLI
$65.42 (-0.38%) $0.25
Oatly Group AB Stock Quote
Oatly Group AB
OTLY
$4.07 (-0.73%) $0.03

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/16/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.