Taking a contrarian stance in a stock isn't easy. You're going against the grain and effectively hoping that the market as a whole has gotten things wrong. If you're right, you can stand to generate significant gains, but if you're not, then your losses could be massive.
One stock that might make for a potential contrarian option these days is Beyond Meat (BYND 7.39%). The stock did experience a brief and sudden surge in October, but for the most part, it's been on a continual decline. In the past 12 months, shares of Beyond Meat have declined a staggering 73%.
Is there any hope of a turnaround for the stock in the near future, or are you simply better off staying away from it?
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The business is struggling on multiple fronts
Beyond Meat has been struggling to show much in the way of growth or profitability, and that has been weighing on the stock. Through the first nine months of 2025, the company's net revenue totaled $213.9 million, representing a decline of more than 14% from the same period a year ago.
Meanwhile, with its margins continually being low, its operating loss over the past three quarters totaled $203.4 million, which is far higher than the $118.3 million loss it posted during the same period in the previous year. With such lackluster results, the food company hasn't given investors much of a reason to be bullish on its operations, particularly at a time when consumers are being more cautious in making discretionary purchases.
NASDAQ: BYND
Key Data Points
Is Beyond Meat stock worth the risk?
The bullish case for Beyond Meat centers around new product launches and its low valuation. Currently, it has a market cap of around $400 million. Five years ago, its valuation was around $10 billion. This is a heavily discounted stock, indicating the risk that investors see with it right now.
Beyond Meat has, however, recently announced the launch of a beverage line, focusing on protein drinks, which could unlock a new growth opportunity for the business. But new product launches are nothing new for Beyond Meat, and while hopping on the hype around protein products may seem exciting, it's not a surefire recipe for success or a guarantee that its business will get out of the red anytime soon.
This is a stock that's still highly risky, and it's not one I'd take a chance on, despite a seemingly low valuation. I wouldn't expect a big rally from it this year. With many question marks around the business, a wait-and-see approach appears to be the most appropriate with Beyond Meat. The company is expected to release its latest quarterly numbers later this week.
