Track market-moving stories before they get noisy

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Phillips 66 (PSX - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Phillips 66 currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market? In order to see if PSX is a promising momentum pick, let's examine some Momentum Style elements to see if this oil refiner holds up.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For PSX, shares are up 2.7% over the past week while the Zacks Oil and Gas - Refining and Marketing industry is up 2.68% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 12.68% compares favorably with the industry's 12.68% performance as well.

Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Phillips 66 have risen 13.13%, and are up 40.14% in the last year. In comparison, the S&P 500 has only moved 8.69% and 26.52%, respectively.

Investors should also pay attention to PSX's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. PSX is currently averaging 2,555,843 shares for the last 20 days.

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with PSX.

Over the past two months, 8 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost PSX's consensus estimate, increasing from $11.76 to $17.64 in the past 60 days. Looking at the next fiscal year, 7 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that PSX is a #1 (Strong Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Phillips 66 on your short list.

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Let's take a look at what these Wall Street heavyweights have to say about Phillips 66 (PSX - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Phillips 66 currently has an average brokerage recommendation (ABR) of 1.93, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 21 brokerage firms. An ABR of 1.93 approximates between Strong Buy and Buy.

Of the 21 recommendations that derive the current ABR, 11 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 52.4% and 9.5% of all recommendations.

Brokerage Recommendation Trends for PSX

Check price target & stock forecast for Phillips 66 here>>>

The ABR suggests buying Phillips 66, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Should You Invest in PSX?In terms of earnings estimate revisions for Phillips 66, the Zacks Consensus Estimate for the current year has increased 14% over the past month to $17.64.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Phillips 66. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Phillips 66 may serve as a useful guide for investors.

In the latest trading session, Phillips 66 (PSX - Free Report) closed at $180.24, marking a +2.48% move from the previous day. This move outpaced the S&P 500's daily gain of 0.26%. Elsewhere, the Dow saw an upswing of 0.09%, while the tech-heavy Nasdaq appreciated by 0.42%.

Shares of the oil refiner witnessed a loss of 0.18% over the previous month, beating the performance of the Oils-Energy sector with its loss of 4.92%, and underperforming the S&P 500's gain of 6.32%.

The investment community will be paying close attention to the earnings performance of Phillips 66 in its upcoming release. The company is forecasted to report an EPS of $5.83, showcasing a 144.96% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $35.36 billion, reflecting a 5.49% rise from the equivalent quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $17.64 per share and a revenue of $140.94 billion, indicating changes of +173.91% and +3.21%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Phillips 66. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.74% upward. At present, Phillips 66 boasts a Zacks Rank of #1 (Strong Buy).

Looking at valuation, Phillips 66 is presently trading at a Forward P/E ratio of 9.97. For comparison, its industry has an average Forward P/E of 9.1, which means Phillips 66 is trading at a premium to the group.

One should further note that PSX currently holds a PEG ratio of 0.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Oil and Gas - Refining and Marketing industry was having an average PEG ratio of 0.36.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 17, which puts it in the top 7% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Phillips 66 (PSX - Free Report) closed the most recent trading day at $179.00, moving -2.41% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.26%. Elsewhere, the Dow saw an upswing of 0.17%, while the tech-heavy Nasdaq depreciated by 0.97%.

The oil refiner's stock has climbed by 4.6% in the past month, exceeding the Oils-Energy sector's gain of 0.73% and the S&P 500's gain of 0.23%.

The upcoming earnings release of Phillips 66 will be of great interest to investors. It is anticipated that the company will report an EPS of $5.83, marking a 144.96% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $35.36 billion, up 5.49% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $17.64 per share and revenue of $140.94 billion. These totals would mark changes of +173.91% and +3.21%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Phillips 66. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.41% higher. Phillips 66 presently features a Zacks Rank of #1 (Strong Buy).

From a valuation perspective, Phillips 66 is currently exchanging hands at a Forward P/E ratio of 10.4. This expresses a premium compared to the average Forward P/E of 9.76 of its industry.

We can also see that PSX currently has a PEG ratio of 0.27. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Oil and Gas - Refining and Marketing industry stood at 0.38 at the close of the market yesterday.

The Oil and Gas - Refining and Marketing industry is part of the Oils-Energy sector. With its current Zacks Industry Rank of 20, this industry ranks in the top 9% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

EL SEGUNDO, Calif., May 06, 2026 (GLOBE NEWSWIRE) -- Beyond Meat, Inc. (NASDAQ: BYND), otherwise known as Beyond The Plant Protein CompanyTM (the “Company” or “Beyond Meat”), today reported financial results for its first quarter ended March 28, 2026.

First Quarter 2026 Financial Highlights1

Net revenues were $58.2 million, a decrease of 15.3% year-over-year.Gross profit was $2.0 million, or gross margin of 3.4%, compared to gross loss of $6.9 million, or gross margin of -10.1%, in the year-ago period. Gross profit and gross margin included $0.5 million in expenses related to the cessation of the Company’s operational activities in China, compared to $0.9 million in the year-ago period. Loss from operations was $41.1 million, or operating margin of -70.6%, compared to loss from operations of $64.4 million, or operating margin of -93.6%, in the year-ago period. Loss from operations included the following charges recorded in operating expenses: $3.7 million in incremental share-based compensation expense related to the Company’s convertible debt exchange; $0.8 million in certain non-routine SG&A expenses; $0.4 million in amortization of costs related to a partial lease termination of a portion of the Company’s campus headquarters building in El Segundo, California (the “Campus Headquarters”); and $0.2 million in incremental legal and other fees and expenses associated with arbitration proceedings related to a previously-disclosed contractual dispute with a former co-manufacturer, compared to $4.6 million in the year-ago period. Net loss was $28.5 million, compared to net loss of $61.1 million in the year-ago period. Net loss per common share was $0.06, compared to net loss per common share of $0.80 in the year-ago period.Adjusted EBITDA was a loss of $27.8 million, or -47.7% of net revenues, compared to an Adjusted EBITDA loss of $50.5 million, or -73.5% of net revenues, in the year-ago period.
________________________________
1 This release includes references to non-GAAP financial measures. Refer to “Non-GAAP Financial Measures” later in this release for the definitions of the non-GAAP financial measures presented and a reconciliation of these measures to their closest comparable GAAP measures.

Beyond Meat President and CEO Ethan Brown commented, “This quarter marked a decisive broadening of our Company aperture to include the rapidly growing functional food and beverage category. Even as we apply our brand, expertise and technology to adjacent markets, we remain highly focused on the performance of our core business, which we believe will deliver substantial long-term value. To this end, we are pleased to report significant operating expense improvement and our lowest quarterly cash use in over two years.” 

Brown continued, “We look forward to continuing this transformative work across the balance of the year.”

First Quarter 2026

Net revenues decreased 15.3% to $58.2 million in the first quarter of 2026, compared to $68.7 million in the year-ago period. The decrease in net revenues was primarily driven by a 19.5% decrease in volume of products sold, partially offset by a 5.4% increase in net revenue per pound. The decrease in volume of products sold was primarily driven by lower sales of burger and chicken products to Quick Service Restaurant (“QSR”) customers in the international foodservice channel, and by weak category demand and reduced points of distribution in the U.S. retail and foodservice channels. The increase in net revenue per pound was primarily driven by changes in product sales mix and favorable changes in foreign currency exchange rates, partially offset by higher trade discounts.

U.S. retail channel net revenues decreased 15.3% to $26.6 million in the first quarter of 2026, compared to $31.4 million in the year-ago period. The decrease in U.S. retail channel net revenues was primarily driven by a 14.7% decrease in volume of products sold and a 0.6% decrease in net revenue per pound. The decrease in volume of products sold was primarily driven by weak category demand and reduced points of distribution within certain channels. The decrease in net revenue per pound was primarily driven by higher trade discounts and price decreases of certain of the Company’s products, partially offset by changes in product sales mix.

U.S. foodservice channel net revenues decreased 29.7% to $6.6 million in the first quarter of 2026, compared to $9.4 million in the year-ago period. The decrease in U.S. foodservice channel net revenues was primarily driven by a 31.8% decrease in volume of products sold, partially offset by a 3.0% increase in net revenue per pound. The decrease in volume of products sold was primarily driven by weak category demand and reduced points of distribution, including the lapping of sales of chicken products to a QSR customer in the year-ago period. The increase in net revenue per pound was primarily driven by changes in product sales mix and, to a lesser extent, lower trade discounts, partially offset by price decreases of certain of the Company’s products.

International retail channel net revenues increased 8.1% to $13.7 million in the first quarter of 2026, compared to $12.7 million in the year-ago period. The increase in international retail channel net revenues was primarily driven by a 7.8% increase in net revenue per pound and a 0.3% increase in volume of products sold. The increase in net revenue per pound was primarily driven by favorable changes in foreign currency exchange rates and price increases of certain of the Company’s products, partially offset by higher trade discounts. The increase in volume of products sold was primarily driven by improved demand and limited distribution gains in European markets, partially offset by certain distribution losses in Canada.

International foodservice channel net revenues decreased 25.9% to $11.3 million in the first quarter of 2026, compared to $15.3 million in the year-ago period. The decrease in international foodservice channel net revenues was primarily driven by a 32.6% decrease in volume of products sold, partially offset by a 10.2% increase in net revenue per pound. The decrease in volume of products sold was primarily driven by lower sales of burger and chicken products to certain QSR customers. The increase in net revenue per pound was primarily driven by favorable changes in foreign currency exchange rates and lower trade discounts, partially offset by changes in product sales mix.

Net revenues by channel (unaudited):

The following table presents the Company’s net revenues by channel for the periods presented:

  Three Months Ended Change(in thousands) March 28, 2026 March 29, 2025 Amount %U.S.:        Retail $26,554 $31,360 $(4,806) (15.3)%Foodservice  6,618  9,413  (2,795) (29.7)%U.S. net revenues  33,172  40,773  (7,601) (18.6)%International:        Retail  13,709  12,682  1,027  8.1%Foodservice  11,325  15,276  (3,951) (25.9)%International net revenues  25,034  27,958  (2,924) (10.5)%Net revenues $58,206 $68,731 $(10,525) (15.3)%
Volume of products sold by channel (unaudited):

The following table presents the Company’s consolidated volume of products sold in pounds for the periods presented:

  Three Months Ended Change(in thousands) March 28, 2026 March 29, 2025 Amount %U.S.:        Retail 4,899 5,740 (841) (14.7)%Foodservice 1,076 1,578 (502) (31.8)%International:        Retail 2,672 2,664 8  0.3%Foodservice 3,184 4,724 (1,540) (32.6)%Volume of products sold 11,831 14,706 (2,875) (19.5)%
Gross profit in the first quarter of 2026 was $2.0 million, or gross margin of 3.4%, compared to gross loss of $6.9 million, or gross margin of -10.1%, in the year-ago period. Gross profit and gross margin in the first quarter of 2026 included $0.5 million in expenses related to the cessation of the Company’s operational activities in China, compared to $0.9 million in the year-ago period. Additionally, gross profit and gross margin in the first quarter of 2026 were positively impacted by decreased cost of goods sold per pound and by increased net revenue per pound. The decrease in cost of goods sold per pound primarily reflected lower inventory provision and reduced manufacturing expenses, including depreciation, partially offset by increased materials costs.

Operating expenses were $43.1 million in the first quarter of 2026, compared to $57.4 million in the year-ago period. Operating expenses in the first quarter of 2026 included $3.7 million in incremental share-based compensation expense related to the Company’s convertible debt exchange, $0.8 million in certain non-routine SG&A expenses, $0.4 million in amortization of costs related to a partial lease termination of a portion of the Company’s Campus Headquarters, and $0.2 million in incremental legal and other fees and expenses associated with arbitration proceedings related to a contractual dispute with a former co-manufacturer, compared to $4.6 million in the year-ago period. Notwithstanding these items, the decrease in operating expenses compared to the first quarter of 2025 was primarily driven by lower product donation costs, lower legal expenses and lower salary and related expenses.

Loss from operations in the first quarter of 2026 was $41.1 million, compared to $64.4 million in the year-ago period. The reduction in loss from operations was driven by the decrease in operating expenses and the increase in gross profit.

The following table summarizes certain charges recorded in the Company’s consolidated statement of operations for the first quarter of 2026 (unaudited):

(in thousands) Three Months Ended March 28, 2026Charges recorded in cost of goods sold  Expenses related to cessation of operational activities in China $546Total charges recorded in cost of goods sold $546   Charges recorded in operating expenses  Incremental non-cash share-based compensation expense $3,695Certain non-routine SG&A expenses  838Amortization of costs related to partial lease termination  387Incremental legal expenses related to contractual dispute with former co-manufacturer 207Total charges recorded in operating expenses $5,127Total $5,673
Total other income, net, was $12.6 million in the first quarter of 2026, compared to total other income, net, of $3.3 million in the year-ago period. The increase in total other income, net, was primarily due to a non-cash gain from the remeasurement of derivative liability and gain on debt extinguishment, partially offset by an increase in interest expense related to the Company’s delayed draw term loan facility and net realized and unrealized foreign currency transaction losses due to unfavorable changes in foreign currency exchange rates of the Euro.

Net loss was $28.5 million in the first quarter of 2026, compared to net loss of $61.1 million in the year-ago period. Net loss per common share was $0.06, compared to net loss per common share of $0.80 in the year-ago period. The decrease in net loss in the first quarter of 2026 was primarily driven by the decrease in loss from operations and the increase in total other income, net.

Adjusted EBITDA was a loss of $27.8 million, or -47.7% of net revenues, in the first quarter of 2026, compared to an Adjusted EBITDA loss of $50.5 million, or -73.5% of net revenues, in the year-ago period.

Balance Sheet and Cash Flow Highlights

The Company’s cash and cash equivalents balance, including restricted cash, was $205.8 million and total outstanding carrying value of debt, net of debt discount, was $411.6 million as of March 28, 2026, which included the total undiscounted future cash flows of the new 2030 Notes recorded at the completion of the Company’s convertible debt exchange. Net cash used in operating activities was $5.0 million in the three months ended March 28, 2026, compared to $26.1 million in the year-ago period. Capital expenditures totaled $2.5 million in the three months ended March 28, 2026, compared to $4.5 million in the year-ago period. Net cash used in investing activities was $1.8 million in the three months ended March 28, 2026, compared to $4.1 million in the year-ago period. Net cash used in financing activities was $4.5 million in the three months ended March 28, 2026, compared to $0.6 million in the year-ago period.

Subsequent to the three months ended March 28, 2026, an additional $62.6 million in aggregate principal amount of 2030 Notes were converted into shares of the Company’s common stock and the Company issued 52,092,284 Conversion Shares to such converting noteholders and an aggregate of 3,869,808 anti-dilution restricted stock units to certain key employees.

Second Quarter 2026 Outlook

The Company continues to experience an elevated level of uncertainty and volatility within its operating environment, which has, and may continue to have, unforeseen impacts on the Company’s actual realized results. In light of this uncertainty, the Company is limiting its outlook to the following:

In the second quarter of 2026, net revenues are expected to be approximately $60 million to $65 million. Conference Call and Webcast

The Company will host a conference call today to discuss these results at 5:00 p.m. Eastern, 2:00 p.m. Pacific. Investors interested in participating in the live call can dial 412-902-4255. There will also be a simultaneous, live webcast available on the Investors section of the Company’s website at www.beyondmeat.com. The webcast will also be archived.

About Beyond Meat

Beyond Meat, Inc. (NASDAQ: BYND), otherwise known as Beyond The Plant Protein CompanyTM, is a plant protein company offering a portfolio of plant-based products made from simple ingredients without GMOs, no added hormones or antibiotics, and 0 mg of cholesterol per serving. Founded in 2009, Beyond Meat’s core products are designed to have the same taste and texture as animal-based meat while being better for people and the planet. Beyond Meat’s brand promise, Eat What You Love®, represents a strong belief that there is a better way to feed our future and that the positive choices we all make, no matter how small, can have a great impact on our personal health and the health of our planet. By shifting from animal-based protein to plant-based protein, we can positively impact four growing global issues: human health, climate change, constraints on natural resources and animal welfare. Visit www.BeyondMeat.com and follow @BeyondMeat on Facebook, Instagram, Threads and LinkedIn.

Forward-Looking Statements

Certain statements in this release constitute “forward-looking statements" within the meaning of the federal securities laws, including statements related to the Company’s expectations with respect to its second quarter 2026 outlook, the long-term value of its core business, its strategic repositioning and expansion into adjacent product categories, and anticipated market receptivity.

Forward-looking statements are based on management's current opinions, expectations, beliefs, plans, objectives, assumptions and projections regarding financial performance, prospects, future events and future results, including ongoing uncertainty related to macroeconomic issues, including high inflation and interest rates, prolonged, weakening demand in the plant-based meat category, ongoing concerns about the likelihood of a recession and increased competition, among other matters, and involve known and unknown risks that are difficult to predict. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “project,” “predict,” “outlook,” “potential,” “continue,” “likely,” “will,” “would” and variations of these terms and similar expressions, or the negative of these terms or similar expressions. These forward-looking statements are only predictions, not historical fact, and involve certain risks and uncertainties, as well as assumptions. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by which or whether, such performance or results will be achieved. Actual results, levels of activity, performance, achievements and events could differ materially from those stated, anticipated or implied by such forward-looking statements. While Beyond Meat believes that its assumptions are reasonable, it is very difficult to predict the impact of known factors and, of course, it is impossible to anticipate all factors that could affect actual results. There are many risks and uncertainties that could cause actual results to differ materially from forward-looking statements made herein including, but not limited to: a further decrease in demand, and the underlying factors negatively impacting demand, in the plant-based meat category, including the exacerbation of weakness in the category by macroeconomic trends; the success of our marketing initiatives and the ability to maintain and grow our brand awareness, maintain, protect and enhance our brand, or rebrand altogether, attract and retain new customers and maintain and grow our market share, particularly while we are seeking to reduce our operating expenses; the success of our strategic repositioning to Beyond The Plant Protein Company, including risks related to brand dilution or confusion, the failure to achieve meaningful consumer acceptance of an expanded portfolio of plant-based protein offerings across multiple categories and adjacencies, and the diversion of management time and financial resources from our existing business or other priorities; changes in the retail landscape, including our ability to maintain and expand our distribution footprint, the timing, success and level of trade and promotion discounts, our ability to maintain and grow market share and increase household penetration, repeat purchases, buying rates (amount spent per buyer) and purchase frequency, our ability to maintain and increase sales velocity of our products, and the timing and success of our efforts to expand distribution channels, such as our direct-to-consumer (DTC) channel, and planned new products or recently launched products; our ability to successfully innovate and commercialize new plant-based protein products, including in adjacent categories outside of our core, meat analogue offerings, such as our Beyond Immerse functional beverage line of sparkling plant-based protein drinks, and consumer acceptance of such new products; the sufficiency of our cash and cash equivalents to meet our liquidity needs, including estimates of our expenses, future revenues, capital expenditures and capital requirements; our ability to obtain additional equity and/or debt financing, the terms of any such financing, and our ability to continue to bolster our balance sheet, particularly because we no longer satisfy the eligibility requirements for use of a registration statement on Form S-3 and, as a result, are unable to access our ATM program; risks associated with our indebtedness, leverage and liquidity relating to our significant debt, including our ability to repay or refinance and otherwise satisfy our obligations under each of the Loan and Security Agreement, our 0% Convertible Senior Notes due 2027 (the “2027 Notes”) that remain outstanding and our 7.00% Convertible Senior Secured Second Lien PIK Toggle Notes due 2030 (the “2030 Notes” and, together with the 2027 Notes, the “Notes”) issued in the exchange offer related to the 2027 Notes, which was completed on October 30, 2025 (the “Exchange Offer”), and our ability to comply with the covenants in the Loan and Security Agreement and respective indentures governing the Notes; our ability to raise the funds necessary to repurchase the Notes for cash, under certain circumstances, or to pay any cash amounts due under the Notes; the impact of the Exchange Offer on future availability of our pre-change net operating loss carryforwards and other tax attributes to offset our future net taxable income; the annual limitations on utilization of any remaining operating loss and tax credit carryforwards due to ownership change limitations provided by the Internal Revenue Code and similar state tax provisions, and the outcomes of any related audits or examinations; the significant dilution to our stockholders that resulted from the Exchange Offer and the additional dilution that will result if we exchange any portion of our outstanding Notes for equity, issue shares of our common stock with respect to the 2030 Notes (including any 2030 Notes issued as payment-in-kind interest on such 2030 Notes), including in connection with conversions of the 2030 Notes at our option or at the option of holders, upon equitization of the 2030 Notes, as payment of accrued interest in the form of common stock or in payment of certain make-whole payments on the 2030 Notes, in each case pursuant to the terms of the 2030 Notes, or if the lenders under the Loan and Security Agreement exercise their related warrants to purchase shares of our common stock (the “Warrants”), as further described herein; provisions in the respective indentures governing the Notes and in the Loan and Security Agreement delaying or preventing an otherwise beneficial takeover of us; and any adverse impact on our reported financial condition and results from the accounting methods for the Notes; our ability to remediate the existing material weaknesses in our internal control over financial reporting and maintain effective internal control over financial reporting and disclosure controls and procedures; risks and uncertainties related to failures to maintain effective internal control over financial reporting, and related to the identification of errors in our previously issued financial statements, and a potential need to restate financial statements in such instances; market price fluctuations in the price of our common stock, whether due to dilution, adverse business or financial performance or the perception of such adverse performance, failure to meet the Nasdaq continued listing requirement for minimum bid price or other Nasdaq listing requirements and the potential delisting of our common stock, or market and trading dynamics unrelated to our underlying business, operating and financial performance or prospects or macro or industry fundamentals which may not coincide in timing with the disclosure of news or developments by or affecting us, could cause the market price of our common stock to fluctuate dramatically or decline rapidly, regardless of any developments in our business or financial results; the impact of general economic conditions in the U.S. and international markets on us, our customers, our suppliers, our vendors and consumers, including concerns related to inflation, geopolitical and economic uncertainty and instability, a potential recession, the shutdown of the federal government including regulatory agencies, tariffs and trade wars, and the effects of those conditions on consumer spending; the impact of adverse and uncertain political conditions in the U.S. and international markets, such as greater restrictions on free trade through significant increases in tariffs on raw materials, ingredients, finished goods and other products and supplies imported into the United States and increased uncertainty surrounding international trade policy and regulations, trade wars, including through the implementation of retaliatory tariffs or related counter-measures, and the negative effects of anti-American sentiment, the conflict in the Middle East, as well as the impact of inflation and high interest rates on consumer behavior, including higher food, grocery, raw materials, transportation, energy, labor and fuel costs; risks and uncertainties related to identifying and executing our current and future cost-reduction initiatives, cost structure improvements, workforce reductions, executive leadership changes and other organizational changes, including realignment of reporting structures, and the timing and success of continuing to reduce operating expenses and achieving our profitability, cash flow and financial performance objectives; our ability to streamline operations and improve cost efficiencies, which could result in the contraction of our business and the continued implementation of significant cost cutting measures such as further downsizing, consolidating or exiting certain operations, including product lines, domestically and/or abroad; the timing and success of narrowing our commercial focus to certain anticipated growth opportunities; accelerating activities that prioritize gross margin expansion and cash generation, including as part of our review of our global operations initiated in 2023 (“Global Operations Review”); changes to our pricing architecture; cash-accretive inventory reduction initiatives; and further cost-reduction initiatives; our ability to successfully execute our Global Operations Review and any resulting strategic plans, including the exit or discontinuation of select product lines; the impact of non-cash charges such as provision for excess and obsolete inventory and potential additional impairment charges, write-offs, disposals and accelerated depreciation of fixed assets, and losses on sale and write-down of fixed assets and assets held for sale; further optimization of our manufacturing capacity and real estate footprint; workforce reductions; and the cessation of our operational activities in China in 2025; our ability to successfully execute the transformation office initiatives including, among other things, positioning the business for a more fundamental resizing of operating expenses, driving margin recovery, including through targeted investments in our facilities and supply chain cost reductions, reducing inventory and associated carrying costs through SKU rationalization and the discontinuation of certain product lines, and preserving cash and monetizing non-strategic or idle assets; our ability to meet our obligations under leases for our corporate offices, manufacturing facilities and warehouses, including matters relating to our Campus Headquarters including, without limitation, the ability to meet our obligations under our Campus Headquarters lease, as amended from time to time (the “Campus Lease”), the impact of workforce reductions or other cost-reduction initiatives on our space demands, the impact of the surrender of a portion of the existing premises, the impact of the sublease of a portion of the existing premises, other efforts to develop, repurpose or consolidate our use of our leased premises, and the timing and success of surrendering, subleasing, assigning or otherwise transferring, developing or repurposing the remaining used or excess leased space or negotiating additional partial lease terminations and/or subleases or other dispositions of our Campus Headquarters on terms advantageous to us or at all, including any potential additional impairment charges that may result; reduced consumer confidence and changes in consumer spending, including spending to purchase our products, and negative trends in consumer purchasing patterns due to levels of consumers’ disposable income, credit availability and debt levels, and economic conditions, including due to potential recessionary and inflationary pressures, and geopolitical instability and wars; our inability to properly manage and ultimately sell our inventory in a timely manner, which has in the past and could in the future require us to sell our products through liquidation channels at lower prices, write-down or write-off excess or obsolete inventory, or increase inventory provision; ongoing and persistent declines in demand in the plant-based meat category and for our products, or strategic decisions that result in changes to our product portfolio, including the potential discontinuation of certain product lines through initiatives stemming from our transformation office and program or other strategic measures, which may require us to write-down or write-off excess or obsolete inventories; impairment charges, including due to any future changes in estimates, judgments or assumptions, failure to achieve forecasted operating results, due to weakness in the economic environment, demand for our products or other factors, changes in market conditions and declines in our publicly-quoted stock price and market capitalization, failure to sublease, assign or otherwise transfer any excess space or negotiate additional partial lease terminations and/or subleases or other dispositions of our Campus Headquarters or other facilities on terms advantageous to us or at all, and the cessation of our operational activities in China in 2025; our ability to accurately predict consumer taste preferences, trends and demand and successfully innovate, introduce and commercialize new products, including in new geographic markets; the effects of competitive activity from our market competitors, including through consolidation in the plant-based food industry or vertical consolidation of diversified food businesses with existing plant-based food businesses, and new market entrants, which may include companies with substantially greater financial resources than us; our ability to protect our brand against misinformation about our products and the plant-based meat category, real or perceived quality or health issues with our products, marketing campaigns aimed at generating negative publicity regarding our products and the plant-based meat category, including regarding the nutritional value of our products, and other issues that could adversely affect our brand and reputation; disruption to, and the impact of uncertainty in, our domestic and international supply chain, including labor shortages and disruption, shipping delays and disruption, the impact of tariffs on raw materials, ingredients, finished goods and other products and supplies imported into the U.S., and the impact of cyber incidents at suppliers and vendors; the impact of uncertainty as a result of doing business internationally, including as a result of the cessation of our operational activities in China in 2025; the volatility of or inability to access the capital markets, including due to macroeconomic factors, geopolitical tensions, trade policy uncertainty (including tariffs and retaliatory trade measures), or the outbreak or escalation of hostilities or war—for example, the ongoing war between Russia and Ukraine and the conflict in the Middle East, and their impacts on the surrounding areas and global economy; changes in the foodservice landscape, including the timing, success and level of marketing and other financial incentives to assist in the promotion of our products, our ability to maintain and grow market share and attract and retain new foodservice customers or retain existing foodservice customers, and our ability to introduce and sustain offering of our products on menus; the timing and success of distribution expansion and new product introductions, including the success of our DTC channel, and the timing and success of planned new products or recently launched products in increasing revenues and market share, including the success of our distribution partnership with Big Geyser for Beyond Immerse; our ability to differentiate and continuously create innovative products, respond to competitive innovation and achieve speed-to-market, including the timing and success of planned new products or recently launched products; the timing and success of strategic Quick Service Restaurant (“QSR”) partnership launches and limited time offerings resulting in permanent menu items and our ability to attract and retain QSR and other strategic customers; the outcomes of, and costs related to, legal or administrative proceedings, including any settlements, appeals from initial decisions or other developments in such proceedings, or new legal or administrative proceedings filed against us; foreign currency exchange rate fluctuations; the effectiveness of our business systems and processes; our estimates of the size of our market opportunities and ability to accurately forecast market conditions; our ability to effectively optimize our manufacturing and production capacity, and real estate footprint, including consolidating manufacturing facilities and production lines, exiting co-manufacturing arrangements or entering into new arrangements under terms that are ultimately beneficial to us and effectively managing capacity for specific products with shifts in demand; risks associated with underutilization of capacity which have in the past and could in the future give rise to increased cost of goods sold per pound, underutilization fees, termination fees and other costs to exit certain supply chain arrangements and product lines, and/or the write-down or write-off of certain equipment and other fixed assets and impairment charges, all of which could negatively impact gross margin, driving less leverage on fixed costs and delaying the speed at which cost savings initiatives positively impact our financial results; our ability to accurately forecast our future results of operations and financial goals or targets, including as a result of fluctuations in demand for our products and in the plant-based meat category generally, increased competition, and the impact of broader macroeconomic conditions and market uncertainty; our ability to accurately forecast demand for our products and manage our inventory, including the impact of customer orders ahead of holidays and the timing of customer promotions, shelf reset activities, and price increases as a result of tariffs or otherwise; customer and distributor changes and buying patterns, such as reductions in targeted inventory levels; and supply chain and labor disruptions, including due to the impact of cyber incidents at suppliers and vendors; our operational effectiveness and ability to fulfill orders in full and on time; variations in product selling prices and costs, the timing and success of changes to our pricing architecture, our ability to pass on price increases in full or at all, including due to the impact of tariffs and macroeconomic conditions, and the mix of products sold; our ability to successfully enter new geographic markets, manage our international business and comply with any applicable laws and regulations, including risks associated with doing business in foreign countries, and our ability to comply with the U.S. Foreign Corrupt Practices Act or other anti-corruption laws; the effects of global outbreaks of pandemics, epidemics or other public health crises, or fear of such crises; our ability to attract, maintain and effectively expand our relationships with key strategic foodservice partners; our ability to attract and retain our suppliers, distributors, vendors, co-manufacturers and customers; our ability to procure sufficient high-quality raw materials at competitive prices to manufacture our products; the availability of pea and other proteins and avocado oil that meet our standards; our ability to diversify the protein sources and avocado oil sources used for our products; our ability to successfully execute our strategic initiatives; the volatility associated with ingredient, packaging, transportation and other input costs, including due to the impact of tariffs and rising energy and fuel costs; our ability to keep pace with technological changes impacting the development of our products and implementation of our business needs; significant disruption in, or breach in security of our or our suppliers’ or vendors’ information technology systems, including any inability to detect or timely report any cybersecurity incidents, and resultant interruptions in service and any related impact on our reputation, including data privacy, and any potential impact on our supply chain, including on customer demand, order fulfillment and lost sales, and the resulting timing and/or amount of net revenues recognized; the ability of our transportation providers to ship and deliver our products in a timely and cost-effective manner; senior management and key personnel changes, the attraction, training and retention of qualified employees and key personnel, and our ability to maintain our company culture; risks related to use of a professional employer organization to administer human resources, payroll and employee benefits functions for certain of our international employees, and use of certain third party service providers for the performance of several business operations including payroll, human capital, supply chain optimization, financial reporting and accounting, and certain other management services; the impact of potential workplace hazards; the effects of natural or man-made catastrophic or severe weather events, including events brought on by climate change, particularly involving our or any of our co-manufacturers’ manufacturing facilities, our suppliers’ facilities or any other vital aspects of our supply chain; accounting estimates based on judgment and assumptions that may differ from actual results; changes in laws and government regulation, and their enforcement, affecting our business, including the U.S. Food and Drug Administration and the U.S. Federal Trade Commission governmental regulation, and state, local and foreign regulation; new or pending legislation, or changes in laws, regulations or policies of governmental agencies or regulators, both in the U.S. and abroad, affecting plant-based meat, the labeling, packaging or naming of our products, including requirements regarding nutrient content claims, or our brand name or logo; the failure of acquisitions and other investments to be efficiently integrated and produce the results we anticipate; risks inherent in investment in real estate; adverse developments affecting the financial services industry, including the potential failure of financial institutions with which we have deposits or other business relationships; the financial condition of, and our relationships with our suppliers, vendors, co-manufacturers, distributors, retailers and foodservice customers, and their future decisions regarding their relationships with us; our ability and the ability of our suppliers, vendors and co-manufacturers to comply with food safety, environmental or other laws or regulations and the impact of any non-compliance on our operations, brand reputation and ability to fulfill orders in full and on time; seasonality, including increased levels of grilling activity and higher levels of purchasing by customers ahead of holidays, customer shelf reset activity and the timing of product restocking by our retail customers; the impact of increased scrutiny from a variety of stakeholders, institutional investors and governmental bodies on environmental, social and governance (“ESG”) practices; our suppliers’ and our co-manufacturers’ ability to protect our proprietary technology, intellectual property and trade secrets adequately; the impact of changes in tax laws; and the risks discussed under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission (the “SEC”) on April 9, 2026, the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 28, 2026 to be filed with the SEC, as well as other factors described from time to time in the Company’s filings with the SEC. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. Such forward-looking statements are made only as of the date of this release. Beyond Meat undertakes no obligation to publicly update or revise any forward-looking statement because of new information, future events, changes in assumptions or otherwise, except to the extent required by applicable laws. If the Company does update one or more forward-looking statements, no inference should be made that it will make additional updates with respect to those or other forward-looking statements.

Non-GAAP Financial Measures

The Company refers to certain financial measures that are not recognized under U.S. generally accepted accounting principles (GAAP) in this press release, including: Adjusted loss from operations, Adjusted operating margin, Adjusted net loss, Adjusted net loss per diluted common share, Adjusted EBITDA and Adjusted EBITDA as a % of net revenues. See “Non-GAAP Financial Measures” below for additional information and reconciliations of such non-GAAP financial measures.

Availability of Information on Beyond Meat’s Website and Social Media Channels

Investors and others should note that Beyond Meat routinely announces material information to investors and the marketplace using SEC filings, press releases, public conference calls, webcasts and the Beyond Meat Investor Relations website. The Company also intends to use certain social media channels as a means of disclosing information about it and its products to consumers, and its customers, investors and the public (e.g., @BeyondMeat on Facebook, Instagram, Threads and LinkedIn. The information posted on social media channels is not incorporated by reference in this press release or in any other report or document we file with the SEC. While not all of the information that the Company posts to the Beyond Meat Investor Relations website or to social media accounts is of a material nature, some information could be deemed to be material. Accordingly, the Company encourages investors, the media and others interested in Beyond Meat to review the information that it shares at the “Investors” link located at the bottom of the Company’s webpage at https://investors.beyondmeat.com/investor-relations and to sign up for and regularly follow the Company’s social media accounts. Users may automatically receive email alerts and other information about the Company when enrolling an email address by visiting “Request Email Alerts” in the “Investors” section of Beyond Meat’s website at https://investors.beyondmeat.com/investor-relations.

Contacts
Media:
Shira Zackai
[email protected]

Investors:
Raphael Gross
[email protected]

Correction of Previously Issued Interim Unaudited Condensed Consolidated Financial Statements

During the fourth quarter and full year 2025 financial close procedures, the Company identified errors in its previously issued interim unaudited condensed consolidated financial statements for the three months ended March 29, 2025 relating to (i) inventory valuation and (ii) debt issuance costs. The Company determined that the errors identified were immaterial to its previously issued interim unaudited condensed consolidated financial statements for the three months ended March 29, 2025 and has corrected these errors prospectively in the interim unaudited condensed consolidated financial statements for the three months ended March 29, 2025 in accordance with Accounting Standards Codification 250, “Accounting Changes and Error Corrections.”

As a result, the comparative financial information for the three months ended March 29, 2025 included in the unaudited condensed consolidated financial statements and related non-GAAP reconciliations presented herein reflects these corrections and may differ from amounts previously reported in the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 29, 2025.

To assist investors in reconciling amounts previously reported to the “as corrected” amounts presented herein, the Company has included the following tables that summarize the affected line items and totals. Readers should review these tables together with the discussion above, the unaudited condensed consolidated financial statements included herein, and the additional detail in the Company’s Quarterly Report on Form 10‑Q for the quarter ended March 28, 2026, when filed with the SEC.   

Q1 2025 Condensed Consolidated Statements of Operations (Unaudited) — Previously Reported vs. As Corrected (Unaudited)         (in thousands) Three Months Ended March 29, 2025  As Previously Reported Inventory Valuation Debt Issuance Costs As CorrectedCost of goods sold $69,796  $5,861  $—  $75,657 Gross loss $(1,065) $(5,861) $—  $(6,926)Selling, general and administrative expenses $47,672  $—  $2,310  $49,982 Total operating expenses $55,134  $—  $2,310  $57,444 Loss from operations $(56,199) $(5,861) $(2,310) $(64,370)Loss before taxes $(52,905) $(5,861) $(2,310) $(61,076)Net loss $(52,916) $(5,861) $(2,310) $(61,087)Net loss per share available to common stockholders—basic and diluted $(0.69) $(0.08) $(0.03) $(0.80) Q1 2025 Condensed Consolidated Statement of Cash Flows (Unaudited) — Previously Reported vs. As Corrected (Unaudited)         (in thousands) Three Months Ended March 29, 2025  As Previously Reported Inventory Valuation Debt Issuance Costs As CorrectedNet loss $(52,916) $(5,861) $(2,310) $(61,087)Inventories $14,113  $5,861  $—  $19,974 Prepaid expenses and other current assets $(4,425) $—  $2,310  $(2,115)  BEYOND MEAT, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands, except share and per share data)
(unaudited)   Three Months Ended  March 28,
2026 March 29,
2025Net revenues $58,206  $68,731 Cost of goods sold  56,221   75,657 Gross profit (loss)  1,985   (6,926)Research and development expenses  5,220   7,462 Selling, general and administrative expenses  37,869   49,982 Total operating expenses  43,089   57,444 Loss from operations  (41,104)  (64,370)Other income (expense), net:    Interest expense  (6,732)  (1,024)Remeasurement of warrant liability  1,300   — Remeasurement of derivative liability  11,891   — Gain on debt extinguishment  6,060   — Other, net  119   4,318 Total other income, net  12,638   3,294 Loss before taxes  (28,466)  (61,076)Income tax expense  —   — Equity in losses of unconsolidated joint venture  16   11 Net loss $(28,482) $(61,087)Net loss per share available to common stockholders—basic and diluted $(0.06) $(0.80)Weighted average common shares outstanding—basic and diluted  455,272,616   76,194,916     BEYOND MEAT, INC. AND SUBSIDIARIESCondensed Consolidated Balance Sheets(In thousands, except share and per share data)(unaudited)  March 28,
2026 December 31,
2025Assets     Current assets:     Cash and cash equivalents$        191,005  $        203,890 Restricted cash, current4,350  4,350 Accounts receivable, net25,931  26,060 Inventory68,891  84,032 Prepaid expenses and other current assets11,233  13,758 Assets held for sale9,605  9,394 Total current assets311,015  341,484 Restricted cash, non-current10,401  9,291 Property, plant and equipment, net207,453  213,262 Operating lease right-of-use assets5,173  5,661 Prepaid lease costs, non-current41,156  40,931 Other non-current assets, net2,759  2,595 Investment in unconsolidated joint venture1,507  1,523 Total assets$        579,464  $        614,747 Liabilities and stockholders’ deficit:     Current liabilities:     Accounts payable$        22,585  $        20,525 2027 Notes29,459  — Current portion of operating lease liabilities2,124  2,132 Accrued expenses and other current liabilities11,706  8,975 Accrued litigation expenses38,900  38,900 Short-term finance lease liabilities4,245  4,385 Total current liabilities$        109,019  $        74,917 Long-term liabilities:     2027 Notes$—  $        29,459 2030 Notes, net300,503  308,404 Delayed draw term loans, net81,675  77,877 Delayed draw term loan warrants at fair value3,766  5,066 Operating lease liabilities, net of current portion3,526  4,059 Finance lease liabilities75,699  76,590 2030 Notes Embedded Derivative liability at fair value26,137  39,152 Other long-term liabilities222  220 Total long-term liabilities$        491,528  $        540,827 Commitments and contingencies     Stockholders’ deficit:     Preferred stock, par value $0.0001 per share—500,000 shares authorized, none issued and outstanding$—  $— Common stock, par value $0.0001 per share—3,000,000,000 shares authorized; 463,195,066 shares and 453,688,312 shares issued and outstanding at March 28, 2026 and December 31, 2025, respectively46  45 Additional paid-in capital1,037,320  1,029,308 Accumulated deficit(1,050,989) (1,022,507)Accumulated other comprehensive loss(7,460) (7,843)Total stockholders’ deficit$        (21,083) $        (997)Total liabilities and stockholders’ deficit$        579,464  $        614,747   BEYOND MEAT, INC. AND SUBSIDIARIESCondensed Consolidated Statements of Cash Flows(In thousands)(unaudited)   Three months Ended  March 28,
2026 March 29,
2025Cash flows from operating activities:      Net loss $(28,482) $(61,087)Adjustments to reconcile net loss to net cash used in operating activities:      Depreciation and amortization 6,822  7,416 Non-cash lease expense 491  2,079 Share-based compensation expense 6,521  5,853 Provision for credit losses —  — Amortization of debt issuance costs and debt discount 1,958  984 Loss on sale of fixed assets 30  98 Equity in losses of unconsolidated joint venture 16  11 Change in common stock warrant liability (1,300) — Change in derivative liability (11,891) — Gain on debt extinguishment related to conversion (6,060) — Unrealized losses (gains) on foreign currency transactions 1,498  (3,571)Paid-in-kind interest 3,094  — Net change in operating assets and liabilities:      Accounts receivable (20) (6,038)Inventories 14,904  19,974 Prepaid expenses and other current assets 2,295  (2,115)Accounts payable 2,255  13,976 Accrued expenses and other current liabilities 2,756  (1,031)Prepaid lease costs, non-current 628  (1,768)Operating lease liabilities (543) (927)   Net cash used in operating activities $(5,028) $(26,146)Cash flows from investing activities:      Purchases of property, plant and equipment $(2,527) $(4,485)Proceeds from sale of fixed assets 1,002  348 Payment of security deposits (257) —    Net cash used in investing activities $(1,782) $(4,137)Cash flows from financing activities:      Payments of debt issuance costs —  (125)Principal payments under finance lease obligations (843) (244)Prepayment for non-commenced finance lease (926) — Payments of minimum withholding taxes on net share settlement of equity awards (2,728) (220)Net cash provided by (used in) financing activities $(4,497) $(589)Net decrease in cash, cash equivalents and restricted cash (11,307) (30,872)Cash, cash equivalents and restricted cash at the beginning of the period 217,531  145,554 Effect of foreign currency exchange rate changes on cash (468) 1,144 Cash, cash equivalents and restricted cash at the end of the period $205,756  $115,826 Supplemental disclosures of cash flow information:      Cash paid during the period for:      Interest $—  $— Taxes $—  $— Non-cash investing and financing activities:      Conversion of 2030 Notes to common stock $4,219  $— Non-cash additions to property, plant and equipment $471  $1,531 Non-cash addition to financing leases $—  $136  Non-GAAP Financial Measures

Beyond Meat uses the non-GAAP financial measures set forth below in assessing its operating performance and in its financial communications. Management believes these non-GAAP financial measures provide useful additional information to investors about current trends in the Company's operations and are useful for period-over-period comparisons of operations. In addition, management uses these non-GAAP financial measures to assess operating performance and for business planning purposes. Management also believes these measures are widely used by investors, securities analysts, rating agencies and other parties in evaluating companies in the Company’s industry as a measure of its operational performance. These non-GAAP financial measures should not be considered in isolation or as substitutes for the comparable GAAP measures. In addition, these non-GAAP financial measures may not be computed in the same manner as similarly titled measures used by other companies.

“Adjusted loss from operations” is defined as loss from operations adjusted to exclude, when applicable, costs attributable to special items, which are those items deemed not to be reflective of the Company’s ongoing normal business activities.

“Adjusted operating margin” is defined as Adjusted loss from operations divided by net revenues.

“Adjusted net loss” is defined as net loss adjusted to exclude, when applicable, costs attributable to special items, which are those items deemed not to be reflective of the Company’s normal business activities.

“Adjusted net loss per diluted common share” is defined as Adjusted net loss divided by the number of diluted common shares outstanding.

The Company considers Adjusted loss from operations, Adjusted operating margin, Adjusted net loss and Adjusted net loss per diluted common share to be useful indicators of operating performance because excluding special items allows for period-over-period comparisons of its ongoing operations. Adjusted net loss per diluted common share is a performance measure and should not be used as a measure of liquidity.

“Adjusted EBITDA” is defined as net income (loss) adjusted to exclude, when applicable, income tax expense (benefit), interest expense, depreciation and amortization expense, share-based compensation expense, non-cash charges related to the cessation of the Company’s operational activities in China, litigation-related accruals, remeasurement of warrant liability, remeasurement of derivative liability, and Other, net, including interest income, gain on debt extinguishment, and foreign currency transaction gains and losses.

“Adjusted EBITDA as a % of net revenues” is defined as Adjusted EBITDA divided by net revenues.

There are a number of limitations related to the use of Adjusted EBITDA and Adjusted EBITDA as a % of net revenues rather than their most directly comparable GAAP measures. Some of these limitations are:

Adjusted EBITDA excludes depreciation and amortization expense and, although these are non-cash expenses, the assets being depreciated may have to be replaced in the future increasing the Company’s cash requirements;Adjusted EBITDA does not reflect interest expense, or the cash required to service the Company’s debt, which reduces cash available to the Company;Adjusted EBITDA does not reflect income tax payments that reduce cash available to the Company;Adjusted EBITDA does not reflect share-based compensation expense and therefore does not include all of the Company’s compensation costs;Adjusted EBITDA does not reflect non-cash charges related to the cessation of the Company’s operational activities in China;Adjusted EBITDA does not reflect litigation-related accruals, which may, depending on the outcome of the underlying litigation, reduce cash available to the Company;Adjusted EBITDA does not reflect the non-cash impact of the remeasurement of warrant liability;Adjusted EBITDA does not reflect the non-cash impact of the remeasurement of derivative liability;Adjusted EBITDA does not reflect Other, net, including interest income, gain on debt extinguishment and foreign currency transaction gains and losses, that may increase or decrease cash available to the Company; andother companies, including companies in the Company’s industry, may calculate Adjusted EBITDA differently, which reduces its usefulness as a comparative measure. The following tables present the reconciliation of Adjusted loss from operations, Adjusted operating margin, Adjusted net loss and Adjusted net loss per diluted common share to their most comparable GAAP measures, loss from operations, loss from operations as a % of net revenues, net loss and net loss per share available to common stockholders—basic and diluted, respectively, each as reported (unaudited):

 Three Months Ended(in thousands)March 28,
2026 March 29,
2025Loss from operations, as reported$(41,104) $(64,370)Non-cash charges related to the cessation of operational activities in China 546   2,083 Amortization of costs related to partial lease termination 387   — Adjusted loss from operations$(40,171) $(62,287)Loss from operations as a % of net revenues(70.6)% (93.6)%Adjusted operating margin(69.0)% (90.6)%  Three Months Ended(in thousands)March 28,
2026 March 29,
2025Net loss, as reported$(28,482) $(61,087)Non-cash charges related to the cessation of operational activities in China 546   2,083 Amortization of costs related to partial lease termination 387   — Remeasurement of warrant liability (1,300)  — Remeasurement of derivative liability (11,891)  — Gain on debt extinguishment (6,060)  — Adjusted net loss$(46,800) $(59,004)  Three Months Ended(in thousands, except share and per share amounts)March 28,
2026 March 29,
2025Numerator:   Net loss, as reported$(28,482) $(61,087)Non-cash charges related to the cessation of operational activities in China 546   2,083 Amortization of costs related to partial lease termination 387   — Remeasurement of warrant liability (1,300)  — Remeasurement of derivative liability (11,891)  — Gain on debt extinguishment (6,060)  — Adjusted net loss used in computing Adjusted net loss per diluted common share$(46,800) $(59,004)Denominator:   Weighted average shares used in computing Adjusted net loss per common share 455,272,616   76,194,916 Adjusted net loss per diluted common share$(0.10) $(0.77)  Three Months Ended March 28, 2026 March 29, 2025Net loss per share available to common stockholders—basic and diluted, as reported$(0.06) $(0.80)Non-cash charges related to the cessation of operational activities in China —   0.03 Amortization of costs related to partial lease termination —   — Remeasurement of warrant liability —   — Remeasurement of derivative liability (0.03)  — Gain on debt extinguishment (0.01)  — Adjusted net loss per diluted common share$(0.10) $(0.77)
The following table presents the reconciliation of Adjusted EBITDA to its most comparable GAAP measure, net loss, as reported (unaudited):

  Three Months Ended(in thousands) March 28, 2026 March 29, 2025Net loss, as reported $(28,482) $(61,087)Income tax expense  —   — Interest expense  6,732   1,024 Depreciation and amortization expense(1)(2)  6,276   5,945 Share-based compensation expense  6,521   5,853 Non-cash charges related to the cessation of operational activities in China(3)  546   2,083 Remeasurement of warrant liability  (1,300)  — Remeasurement of derivative liability  (11,891)  — Gain on debt extinguishment  (6,060)  — Other, net(4)(5)  (119)  (4,318)Adjusted EBITDA $(27,777) $(50,500)Net loss as a % of net revenues (48.9)% (88.9)%Adjusted EBITDA as a % of net revenues (47.7)% (73.5)% ________________________

(1) Excludes $0.5 million and $1.5 million in accelerated depreciation related to the reassessment of useful lives of certain assets resulting from the cessation of our operational activities in China in the three months ended March 28, 2026, and March 29, 2025, respectively.(2) Includes $0.4 million in amortization of lease termination costs apportioned for the three months ended March 28, 2026. No such costs were incurred in the three months ended March 29, 2025.(3) Includes $0.5 million and $1.5 million in accelerated depreciation related to reassessment of useful lives of certain assets resulting from the cessation of our operational activities in China in the three months ended March 28, 2026 and March 29, 2025, respectively.(4) Includes $(1.3) million and $3.5 million in net realized and unrealized foreign currency transaction (losses) gains in the three months ended March 28, 2026 and March 29, 2025, respectively.(5) Includes $1.5 million and $0.9 million in interest income in the three months ended March 28, 2026 and March 29, 2025, respectively.

The company logo and trading information for Beyond Meat is displayed on a screen during the IPO at the Nasdaq Market site in New York, U.S., May 2, 2019. REUTERS/Brendan McDermid Purchase Licensing Rights, opens new tab

May 6 (Reuters) - Beyond Meat (BYND.O), opens new tab forecast current-quarter revenue below Wall Street expectations on Wednesday, as it grapples with ​sluggish demand for its once-iconic plant-based products.

The ‌company expects quarterly revenue of $60 million to $65 million, lower than analysts' expectations of about $67 million, according to data ​compiled by LSEG.

The Reuters Inside Track newsletter is your essential guide during the World Cup. Sign up here.

Beyond Meat shares, which closed ​higher by about 13% on Wednesday, fell 9% ⁠in extended trading to about 94 cents.

The ​company, which has struggled to revive the initial enthusiasm, opens new tab ​for its faux-meat products, has been rolling out new products to drum up demand.

Earlier this year, it entered into new ​plant-based categories, launching products such as Beyond ​Immerse protein drinks, catering to protein-conscious consumers.

For the first quarter, ‌Beyond ⁠Meat posted revenue of $58.2 million, compared with analysts' average estimate of $58.1 million.

The company reported a loss of 10 cents per share for the quarter on ​an adjusted ​basis, compared ⁠with a loss of 77 cents per share a year earlier.

Beyond Meat ​had filed its delayed annual report on April ​9 ⁠after identifying material weaknesses in inventory accounting controls, including issues related to excess or obsolete stock, thereby ⁠avoiding ​the need to submit a ​formal plan to regain Nasdaq compliance.

Reporting by Neil J Kanatt ​and Padmanabhan Ananthan in Bengaluru; Editing by Jonathan Ananda

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Beyond Meat (BYND - Free Report) came out with a quarterly loss of $0.1 per share versus the Zacks Consensus Estimate of a loss of $0.12. This compares to a loss of $0.67 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +16.67%. A quarter ago, it was expected that this plant-based meat company would post a loss of $0.12 per share when it actually produced a loss of $0.29, delivering a surprise of -141.67%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Beyond Meat, which belongs to the Zacks Food - Meat Products industry, posted revenues of $58.21 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.79%. This compares to year-ago revenues of $68.73 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Beyond Meat shares have added about 12% since the beginning of the year versus the S&P 500's gain of 6%.

What's Next for Beyond Meat?While Beyond Meat has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Beyond Meat was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #5 (Strong Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.08 on $67.89 million in revenues for the coming quarter and -$0.36 on $252.28 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Meat Products is currently in the bottom 6% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Hormel Foods (HRL - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on May 28.

This maker of Spam canned ham, Dinty Moore stew and other foods is expected to post quarterly earnings of $0.35 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.3% lower over the last 30 days to the current level.

Hormel Foods' revenues are expected to be $2.94 billion, up 1.6% from the year-ago quarter.

Beyond Meat continues to struggle with declining revenues, net losses, and heavy dilution. Q1 revenue fell 15.3% year-over-year to $58.2 million, with volumes down 19.5% and Q2 guidance missing Street expectations, signaling ongoing operational weakness. BYND's cash burn improved to $7.5 million in Q1, but working capital eroded, and debt-for-equity swaps have massively diluted shareholders, with shares outstanding rising from 77 million to 515 million in a year.

Beyond Meat stock is moving in positive territory. What’s pushing BYND stock higher? What's Driving Beyond Meat’s Stock Movement?Beyond Meat is attempting a bounce even as the first-quarter showed $205.8 million in cash and cash equivalents and U.S. foodservice revenue down 29.7% to $6.6 million, keeping traders focused on liquidity and demand durability.

The latest move comes after Beyond Meat reported first-quarter revenue of $58.2 million (down 15.3%) and posted an adjusted loss of 10 cents per share, while its second-quarter revenue outlook of $60.00 million to $65.00 million came in below the $66.97 million consensus.

Critical Price Levels For BYND To WatchPremarket strength has BYND trading around 90 cents, which keeps it slightly above its 20-day SMA (89 cents) and well above its 50-day SMA (79 cents), a setup that often attracts short-term dip buyers after a sharp downdraft. The bigger issue is the long trend: the stock is still 38.7% below its 200-day SMA ($1.47), so rallies can run into overhead supply as trapped holders look to exit.

Momentum is best read through RSI, which sits at 51.71—basically neutral—suggesting the bounce attempt isn't overly stretched in either direction yet. RSI is a quick way to gauge whether recent buying or selling has become "too far, too fast," and this reading points more to a range fight than a momentum breakout.

From a structure standpoint, the 20-day SMA is above the 50-day SMA (a bullish short-term crossover), but the 50-day SMA remains below the 200-day SMA, which keeps the longer-term trend bearish until price can reclaim and hold higher levels. The key risk is that failed bounces can quickly turn into retests of prior lows when a stock is still living under its long-term averages.

Key Support: 50 cents — a nearby level where buyers previously stepped in (52-week low zone) BYND Stock Price Movement In Premarket TradingBYND Stock Price Activity: Beyond Meat shares were up 0.16% at $0.89 during pre-market trading on Friday, according to Benzinga Pro data.

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May 11, 2026 16:05 ET  | Source: Beyond Meat, Inc.

EL SEGUNDO, Calif., May 11, 2026 (GLOBE NEWSWIRE) -- Beyond Meat, Inc. (NASDAQ: BYND), otherwise known as Beyond The Plant Protein Company™ (the “Company”), announced today that on May 10, 2026, the Human Capital Management and Compensation Committee of the Company’s Board of Directors (the “Committee”) granted an option to purchase 237,718 shares of the Company’s common stock and 180,051 restricted stock units (“RSUs”) to Tony Kalajian under the Beyond Meat, Inc. 2026 Employment Inducement Equity Incentive Plan (the “2026 Inducement Plan”) in connection with Mr. Kalajian's hiring and appointment as Chief Accounting Officer. In addition, the Committee granted 150,043 RSUs to one (1) new non-executive employee under the 2026 Inducement Plan. The awards were granted as inducements material to Mr. Kalajian and the non-executive employee entering into employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4).

The option will vest over a period of four years, with 25% of the shares subject to the option vesting on the first anniversary of the vesting commencement date (Mr. Kalajian’s start date), and the remaining shares vesting in substantially equal monthly installments thereafter, subject to Mr. Kalajian’s continued employment with the Company on such vesting dates. The RSUs will vest over a period of four years, with 25% of the RSUs vesting on the first anniversary of the vesting commencement date (the employee’s start date), and the remaining shares vesting in substantially equal quarterly installments thereafter, subject to Mr. Kalajian and the non-executive employee’s continued employment with the Company on such vesting dates. The awards are subject to the terms and conditions of the 2026 Inducement Plan and the terms and conditions of an option award agreement or RSU award agreement, as applicable, covering the grant.

The 2026 Inducement Plan is used exclusively for the grant of equity awards to individuals who were not previously employees of the Company or its parent or subsidiaries, or following a bona fide period of non-employment, as an inducement material to such individuals' entering into employment with the Company, pursuant to Nasdaq Listing Rule 5635(c)(4).

About Beyond Meat
Beyond Meat, Inc. (NASDAQ: BYND), otherwise known as Beyond The Plant Protein Company™, is a plant protein company offering a portfolio of plant-based products made from simple ingredients without GMOs, no added hormones or antibiotics, and 0mg of cholesterol per serving. Founded in 2009, Beyond Meat’s core products are designed to have the same taste and texture as animal-based meat while being better for people and the planet. The Company’s brand promise, Eat What You Love®, represents a strong belief that there is a better way to feed our future and that the positive choices we all make, no matter how small, can have a great impact on our personal health and the health of our planet. By shifting from animal-based protein to plant-based protein, we can positively impact four growing global issues: human health, climate change, constraints on natural resources and animal welfare. Visit www.BeyondMeat.com and follow @BeyondMeat on Facebook, Instagram, Threads and LinkedIn.

Contacts
Media:
Shira Zackai
[email protected]

Beyond Meat (BYND 3.20%) is in a tough spot. In the first quarter, its sales fell roughly 15.3% year over year to land at $58.2 million. While rapidly declining sales are a big issue for the company, its margin picture is arguably even more concerning.

Beyond's gross margin came in at 3.4% in Q1, which was actually a substantial improvement over the negative 10.1% gross margin it recorded in the prior-year period. However, a margin on that level essentially leaves no way for the company to shift into delivering profitability.

Now it's looking toward clear protein drinks as a new product category that could help it reenergize sales and begin to change its margins. Could protein drinks supercharge a turnaround for Beyond Meat?

Image source: Getty Images.

Beyond Meat is betting big on its new beverage line Beyond Immerse is a line of protein drinks that has had a very limited test launch and will have an expanded rollout this summer. Last month, Beyond announced a partnership with Big Geyser, a beverage distributor that serves more than 26,000 locations in the New York metropolitan area.

Beyond lost $41.1 million last quarter, which works out to an operating margin of negative 70.6%. In other words, the company lost roughly $0.71 for every dollar in revenue it generated. If Beyond is to be a viable business over the long term, it clearly needs to find success in new product categories. Demand for the company's plant-based meat alternatives has been weakening, and the outlook for enough economies of scale being realized to allow for big gross-margin improvements is dim.

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Positioning protein drinks at the center of its new product strategies looks like a reasonably well-founded move. Getting easy protein is a good hook for health-conscious consumers, and it's not an accident that "protein" receives such a high degree of focus in many food-industry marketing campaigns. It's a proven marketing winner.

On the other hand, the Beyond Immerse beverage line will have to carve out a foothold and find success in a product category that already has a substantial degree of saturation. The beverage business is a challenging, highly competitive industry -- and securing lasting shelf space and support from consumers is no easy task. Beyond's distribution deal with Big Geyser has the makings of a substantial and encouraging first step, but there's still a lot of uncertainty on the consumer-demand front.

With Beyond Meat's stock down roughly 99% over the past five years, even modest indicators of success for the Immerse beverage line could be enough to power substantial valuation gains in the near term. On the other hand, betting on the company's push into clear protein beverages to deliver a sustained turnaround looks like a risky proposition.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Beyond Meat. The Motley Fool has a disclosure policy.

Beyond Meat (BYND 3.20%) has faced an uncertain future for some time. As sales of its plant-based meat products have plummeted, the stock has lost more than 99% of its value as consumers and investors alike lost confidence in the company.

Now, Beyond Meat has attempted to pivot into the protein drink market. Amid that move, the question for investors is whether that strategic pivot changes the investment thesis for Beyond Meat or merely delays an inevitable decline.

Image source: The Motley Fool.

Beyond Meat began 2026 facing serious financial and business challenges. In 2025, its net revenue of $275 million had fallen 16% from year-ago levels as both domestic and international customers showed less interest in its plant-based meat products.

Additionally, the 2025 operating losses of $333 million more than doubled from 2024 levels as the cost of goods sold alone nearly matched revenue levels. The only reason it turned a $178 million profit for the year is that it received a $549 million benefit from its debt restructuring.

It was under these challenging conditions that the company launched its Beyond Immerse line of protein drinks in January. According to Maximize Market Research, the $35 billion protein drink market should grow at a 9.4% compound annual growth rate (CAGR) through 2032, presumably signaling an opportunity in this area.

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Unfortunately for Beyond Meat, it has not proven that protein drinks are the turnaround catalyst the stock needs. That will be difficult, as it has to compete with corporate titans in the beverage and health industries. This includes PepsiCo's Muscle Milk, Coca-Cola's Fairlife, and drinks like Ensure and Glucerna, both developed by Abbott Laboratories.

Moreover, Beyond Meat does not seem clearly committed to this product line. It rolled out this product for a "limited time" from its Beyond Test Kitchen, which is unlikely to boost investor confidence in the stock.

Furthermore, although it may be premature to look for financial improvements, none have yet appeared in the company's financial results. In the first quarter of 2026, net revenue of $58 million fell 15% year over year. Also, its net losses have resumed, though the $28 million loss improved from the $61 million loss in the year-ago quarter amid aggressive cost-cutting.

Indeed, sales could improve in Q2 once investors can see a full quarter of sales results. Nonetheless, investors will have to see what, if anything, changes with the company's performance.

Stay on the sidelines with Beyond Meat stock Beyond Meat began the year as a financially troubled company, and investors have no indications that its line of protein drinks has changed the company's investment thesis.

Admittedly, protein drinks have become increasingly popular, and the company probably needs more time to show whether the Beyond Immerse product line can turn the company around.

Unfortunately, Beyond Meat remains financially troubled, and it is too early to tell whether a move into protein drinks can succeed, or even whether the beverages will be more than a "limited-time" offering. Additionally, since it has to compete with numerous industry heavyweights, the prospects for success appear grim.

Amid its challenges and revenue declines, investors should probably avoid this consumer staples stock unless its protein drinks start gaining traction with consumers.

Image: Bigstock

Read MoreHide Full Article

An updated edition of the April 21, 2026 article.

Natural foods have moved far beyond niche health-store shelves and are now a regular part of everyday shopping. This shift is being driven by rising interest in overall wellness, better nutrition and more responsible choices for the environment. Consumers across age groups increasingly want food that supports both personal health and broader sustainability.

Shoppers are also paying closer attention to what goes into the products they buy. Clear ingredient lists, limited processing, and claims such as organic, non-GMO and preservative-free are gaining importance. Clean eating has become less of a trend and more of a lasting lifestyle choice for many households.

Stronger food-labeling rules and public health efforts are further supporting this change. Natural food brands are building trust by offering transparency, quality, ethical sourcing and sustainable production practices. This trust often allows them to charge premium prices, as many consumers are willing to pay more for food they see as honest, safe and responsibly made.

Companies like Vital Farms, Inc. (VITL - Free Report) and The Hain Celestial Group, Inc. (HAIN - Free Report) are responding to rising demand for organic, clean-label and ethically sourced foods. With consumers prioritizing transparency, sustainability and minimal processing, the market for natural foods continues to grow. Expanding farm networks, plant-based innovations, and a focus on humane and eco-friendly production are shaping the industry's future.

The natural foods industry is poised for continued evolution through innovation and the expansion of product categories. Companies are investing in plant-based alternatives, functional foods enriched with vitamins and probiotics and sustainable farming technologies. E-commerce is also playing a crucial role in making natural foods more accessible, allowing consumers to shop for organic and gluten-free products with ease. The healthy food industry is projected to grow to $2,052.5 billion by 2035.

If you're looking to capitalize on this trend, our Natural Foods Screen makes it easy to identify high-potential stocks such as Beyond Meat, Inc. (BYND - Free Report) , Sprouts Farmers Market, Inc. (SFM - Free Report) and United Natural Foods, Inc. (UNFI - Free Report) .

Explore 37 cutting-edge investment themes with Zacks Thematic Investing Screens and uncover your next big opportunity.

3 Natural Food Stocks to WatchBeyond Meat has positioned itself as a prominent player in the natural and organic food landscape by advancing plant-based nutrition through products built around clean-label ingredients, non-GMO standards and transparent nutrition. During the first quarter of 2026, the company emphasized its evolution into “Beyond The Plant Protein Company,” broadening its reach beyond meat alternatives into functional food and beverage categories while maintaining its commitment to plant-based nutrition. A key example is Beyond Immerse, a clear functional beverage that combines 20 grams of plant protein, 7 grams of fiber, antioxidants and electrolytes without added sugar, artificial sweeteners, colors, stabilizers, or dairy. Management views this innovation as a natural extension of its expertise in plant-based ingredients and a way to introduce consumers to the benefits of plants through less controversial, health-focused applications.

The company’s natural and organic food strategy is also evident in the continuous enhancement of its core retail portfolio through products that emphasize ingredient integrity and nutritional value. Beyond Meat highlighted the rollout of Beyond Chicken Pieces Spicy Buffalo to more than 2,000 Kroger stores, offering 21 grams of plant protein, only 0.5 grams of saturated fat from avocado oil and compliance with Non-GMO Project standards. The product, along with the original Beyond Chicken Pieces, became the first plant-based chicken offerings certified by the Clean Label Project. Beyond Meat recently announced the nationwide rollout of its Beyond Breakfast Sausage lineup, including Links and Patties in original and spicy varieties, at Kroger and Sprouts, with distribution planned for Whole Foods Market. These products are crafted with simple ingredients and avocado oil, reinforcing the company’s focus on clean-label formulations and consumer trust.

Beyond Meat is further strengthening its position in natural and sustainable foods through product accreditation, innovation and portfolio development. The company noted that Beyond Burger IV and Beyond Steak became the first plant-based meats recognized as Climate Solutions under the Climate Solutions Framework developed by the Exponential Roadmap Initiative and Oxford Net Zero. Beyond Meat also reported holding more than 20 Clean Label Project certifications across its portfolio, underscoring a long-term strategy centered on ingredient transparency and nutritional quality. At the same time, the company is advancing new products such as Beyond Steak Filet, available through the Beyond Test Kitchen platform, featuring 28 grams of protein, 3 grams of fiber, low saturated fat and no cholesterol. These initiatives demonstrate how this Zacks Rank #2 (Buy) company is leveraging innovation, sustainability credentials and clean-label positioning to expand its relevance within the broader natural and organic food category. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Sprouts Farmers has established itself as a leading destination for natural and organic foods by combining a health-and-wellness-focused assortment with a strong innovation pipeline. The company’s strategy centers on helping consumers “live and eat better” through differentiated, attribute-driven products featuring clean ingredients, organic certifications and wellness benefits. During the first quarter of 2026, organic products remained a major growth engine, with more than 55% of produce sales and more than 34% of total company sales coming from organic offerings. Management emphasized that organics continue to serve as an important quality standard for its target customer base and a key point of differentiation. This focus reinforces Sprouts’ positioning as a specialty retailer that blends accessibility, product discovery, and wellness-oriented shopping experiences.

The company launched more than 1,500 new products in early 2026 and continues to attract emerging health-and-wellness brands that view Sprouts as a preferred launch partner. Notable examples include PRESS Coffee Cold Brew Protein Drink, Pendulum Probiotics and Proda, all aligned with consumer demand for functional nutrition and clean-label products. Management highlighted strong momentum in categories such as protein, gut health and wellness beverages, reflecting broader consumer trends. Sprouts also leverages its innovation center and dedicated foraging teams to identify promising brands before they achieve mainstream distribution, strengthening its reputation as a destination for discovery while maintaining a curated assortment of differentiated natural and organic products.

Private-label development is another critical element of Sprouts’ natural and organic growth strategy. The Sprouts brand continues to outperform the broader business, accounting for more than 26% of total sales while expanding across both fresh and shelf-stable categories. Recent launches such as Regenerative Organic Certified Coffee, Seed Oil-Free Hummus and Beef Tallow Kettle Chips demonstrate the company’s ability to align proprietary products with evolving consumer preferences around sustainability, ingredient transparency and nutritional quality. To broaden access to healthy food, Sprouts Farmers is pairing innovation with affordability initiatives, including targeted pricing actions, value-oriented meal solutions and loyalty-driven personalization. This Zacks Rank #3 (Hold) company is also sharpening its marketing efforts to highlight founder stories, differentiated brands, and wellness credentials, reinforcing its leadership position in the growing natural and organic food market.

United Natural Foods occupies a unique position in the U.S. grocery ecosystem as the leading distributor serving natural, organic, specialty and differentiated food retailers. As consumer demand increasingly shifts toward healthier, sustainably sourced and wellness-oriented products, the company has continued to strengthen its role in the natural and organic category. During the third quarter of fiscal 2026, UNFI reported natural product sales growth of more than 4%, outperforming the broader market and reflecting resilient shopper demand for natural, organic, fresh and specialty foods. Management emphasized that natural and organic retailers have nearly tripled their share of the U.S. grocery market over the past two decades, reinforcing the attractiveness of this segment. UNFI’s strategy centers on helping retailers differentiate through premium assortments and health-focused offerings, positioning the company to benefit from long-term category expansion.

UNFI is actively expanding its natural and organic ecosystem through merchandising innovation, supplier support and digital capabilities. A key initiative is the launch of its new digital marketplace, Endless Aisle, which enables retailers to access innovative emerging brands more efficiently while helping suppliers broaden distribution. The company also introduced more than 30 new private-brand SKUs during the quarter, enhancing retailers’ ability to differentiate their assortments and respond to growing consumer interest in nutritious and wellness-oriented products. Through its extensive portfolio of natural, organic and specialty offerings, UNFI supports a wide range of customers, from dedicated natural food retailers to regional grocers seeking to strengthen their health-and-wellness credentials. Management noted that assortment optimization and access to natural and organic products remain central themes in conversations with customers pursuing differentiated retail strategies.

To support continued growth in natural and organic foods, UNFI is investing heavily in supply-chain modernization and technology-driven efficiency. The company expanded its AI-powered supply chain and procurement planning platform across its entire distribution center network, improving inventory management, fill rates and free-cash-flow conversion. It also broadened deployment of the Samsara fleet management platform and extended its cloud-based warehouse management system to five additional distribution centers. These initiatives contributed to higher service levels, including improved fill rates, stronger on-time deliveries and increased throughput. Management highlighted that underlying natural sales growth has consistently delivered mid-teens growth on a two-year stacked basis, demonstrating the durability of demand for natural and organic products. This Zacks Rank #3 company expects its growing wholesale pipeline, technology investments and focus on differentiated food retail to support continued expansion within its approximately $90 billion target addressable market.

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Every headline this week wants you to buy Zillow Group (NASDAQ:Z | Z Price Prediction) on the back of an earnings beat and a fresh AI-platform pitch from CEO Jeremy Wacksman. But here is what you should actually be watching.

Zillow is a leveraged bet on a housing market that the company itself, in its own forward guidance, describes as “planning for the macro housing environment to continue to bounce along the bottom of the cycle”. That setup reads as a value trap dressed in an AI costume, not a retirement-portfolio anchor.

The Z Beat Is Hiding Real Damage Yes, Q1 EPS of $0.53 topped the $0.46 estimate, and revenue of $708 million grew 18.39%. Look under the hood. Traffic to Zillow apps and sites declined 3% year over year to 220 million average monthly users. Gross margin compressed 350 basis points. Incremental legal spend on the FTC trial expected in the first half of 2026 is dragging Adjusted EBITDA margins by 160 basis points. Industry purchase mortgage origination volume is down approximately 1% year over year.

The market has already cast a vote. Shares trade at $35, down 48.7% year to date and 47.34% over the last year, with a trailing P/E of 140. Paying that multiple for a transaction-dependent platform staring at elevated mortgage rates, historically low existing-home inventory, and a housing market that remains thoroughly locked up qualifies as wishful thinking.

The Quiet Beneficiary: Caterpillar A more durable alternative sits with Caterpillar (NYSE:CAT), the unsexy infrastructure giant that just printed $17.415 billion in Q1 revenue, up 22.2%, with EPS of $5.54 against a $4.6439 estimate. Three reasons stand out.

1. Caterpillar is an AI data center play. The Power Generation product line, large reciprocating engines and turbines feeding hyperscaler buildouts, hit $2.817 billion in Q1, up 41% year over year. Jim Cramer put it bluntly in April: “CAT represents infrastructure money, construction money and data center money.” Picks and shovels for the AI capex cycle, without the 60x semiconductor multiples.

2. A record backlog the housing cycle cannot touch. Construction Industries revenue rose 38% to $7.161 billion with segment margin expanding 1.6 points to 21.4%. North America revenue jumped 32%. CEO Joe Creed said “A record backlog provides a strong foundation for continued positive momentum.” That backlog is fed by long-term legislative funding bills like the Infrastructure Investment and Jobs Act and global reshoring trends, sources insulated from 30-year mortgage rates.

3. A cash machine returning real money. In Q1 alone, Caterpillar deployed $5.028 billion on share repurchases and roughly $0.7 billion on dividends. Operating cash flow rose 45.1% to $1.870 billion. The stock is up 53.55% year to date and 151.68% over the past year, yet the forward earnings multiple sits at 38x with an analyst target of $920.14.

The tariff line is real. Q1 Resource Industries segment profit fell 39% on 7 points of margin compression from tariff-driven manufacturing costs. Caterpillar beat through it anyway. Zillow has no such cushion.

The retirement-focused investor does not need another lottery ticket on a housing rebound that management is openly disavowing. For investors weighing the two, the yellow machines powering data centers, highways, and reshored factories look better positioned than the headline-chasing Zillow narrative.

Key Takeaways CAT reported Q1 2026 sales of $17.4B, up 22.2%, driven by strong volume growth.Construction Industries led growth, with CAT segment sales up 38% on $1.5B volume gains.Power & Energy sales rose 22% at CAT, with strong power generation demand supporting the growth outlook. Caterpillar Inc. (CAT - Free Report) delivered a strong volume-driven performance in the first quarter of 2026, highlighting the continued recovery in demand across its end markets. The company reported a $2.3 billion contribution from higher sales volumes (up 17.3% year over year), helping drive sales and revenues to $17.4 billion, up 22.2% year over year. Pricing had a favorable impact of 3.2% and currency impact added 2.6%.

The latest results indicate that the broad-based recovery that began in the second half of 2025 is gaining momentum. Caterpillar returned to positive volume growth (with a modest increase of $237 million) in the second quarter of 2025, after six consecutive quarters of declines. At that time, growth was largely concentrated in the Power & Energy segment (then known as Energy & Transportation), which offset continued weakness in Construction Industries and Resource Industries. All three operating segments started reporting positive volume growth in the third quarter of 2025 and have been gaining momentum since then.  

In the first quarter of 2026, Construction Industries emerged as the biggest contributor to growth. Segment sales rose 38% year over year in the first quarter, benefiting from a $1.5 billion increase in volume. The improvement was largely driven by dealer inventory replenishment. Construction equipment demand also appears to be stabilizing in key markets, particularly in North America, where infrastructure spending, energy projects and non-residential construction activity continue to support equipment purchases.

Power & Energy remains Caterpillar's most important growth engine. Segment sales increased 22% year over year, driven by an $840 million increase in volume. Demand was particularly strong in Power Generation, where sales surged 41%, supported by large reciprocating engines and turbine-related products serving data center applications. Oil and Gas also delivered healthy growth, benefiting from demand for gas-compression equipment and turbine services.

The growing need for power infrastructure to support Artificial Intelligence workloads and data center expansion continues to create a favorable backdrop for Caterpillar's engine and turbine businesses. These trends are expected to remain important growth drivers over the next several years.

Resource Industries sales increased 4%, supported by higher equipment sales to mining customers. Volume growth was modest compared with the other segments. It is expected to improve as mining customers continue to invest in fleet modernization and capacity expansion as commodity prices rise.

Backed by the strengthening volume environment, Caterpillar recently raised its full-year 2026 sales growth expectation to low double digits compared with its earlier forecast for growth near the upper end of its long-term 5-7% compound annual growth target.

Industry peers like Komatsu (KMTUY - Free Report) reported a 3% increase in its revenues to $7.76 billion in the fiscal fourth-quarter 2025 ended March 31, 2026. Komatsu’s Construction, Mining & Utility Equipment sales increased 6.5% in the quarter, while Industrial Machinery & Others sales decreased 1.2%. 

For fiscal 2025 (ended March 31, 2026), Komatsu reported a 0.2% increase in Construction, Mining & Utility Equipment sales as higher selling prices were mostly offset by lower volumes. Industrial Machinery & Others sales, however, rose 6.8% due to increased sales of large presses for the automotive industry and higher-margin excimer laser maintenance for the semiconductor industry. Total net sales were up 0.7%.
Komatsu anticipates Construction, Mining & Utility Equipment sales to dip 0.4% in fiscal 2026 as well, reflecting lower sales volumes citing the situation in the Middle East.

Terex (TEX - Free Report) reported net sales of $1.73 billion, reflecting a 41% jump year over year. Results include the contribution from the REV Group, which is now operating as the Specialty Vehicles (SV) segment.  Proforma sales were up 11%.  Terex expects 2026 sales to grow approximately 5% on a pro forma basis to $7.5-$8.1 billion. This will be driven by mid-single-digit growth in sales in Environmental Solutions and high-single-digit growth in Materials Processing and Specialty Vehicles.

CAT’s Price Performance, Valuation & EstimatesCAT shares have gained 59.8% so far this year compared with the industry’s 51.9% growth. In comparison, the Zacks Industrial Products sector has gained 15.6%. The S&P 500 has moved up 8.4% in the same time frame.

Image Source: Zacks Investment Research

Caterpillar is currently trading at a forward 12-month price/earnings (P/E) ratio of 33.60X compared with the industry average of 31.64X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CAT’s 2026 earnings indicates year-over-year growth of 29.5%. The consensus mark for revenues implies an increase of 13.2% for the year. The earnings estimate for 2027 indicates 23.8% growth, with revenues rising 10.2%.

Image Source: Zacks Investment Research

Earnings estimates for Caterpillar for both 2026 and 2027 have moved up over the past 60 days, as shown in the chart below.

Image Source: Zacks Investment Research

Caterpillar stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.

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The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.

Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.

Focus List Spotlight: Caterpillar (CAT - Free Report) Caterpillar, known for its iconic yellow machines, is the largest global construction and mining equipment manufacturer. Given that it serves a gamut of sectors - infrastructure, construction, mining, oil & gas and transportation, the company is considered a bellwether of the global economy.

On April 18, 2017, CAT was added to the Focus List at $94.14 per share. Shares have increased 871.64% to $914.7 since then, and the company is a #2 (Buy) on the Zacks Rank.

For fiscal 2026, 11 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.85 to $24.68. CAT boasts an average earnings surprise of 9.6%.

Additionally, CAT's earnings are expected to grow 29.5% for the current fiscal year.

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Wednesday started rough, got better, and then worsened again.

The three most popular market indexes started this morning just below breakeven, bounced back slightly in the first couple of hours, and then plunged in unison.

As of 12:12 p.m. ET, the Dow Jones Industrial Average (^DJI +0.70%) and the Nasdaq Composite (^IXIC +0.31%) are down 1.2%. The S&P 500 (^GSPC +0.50%) is doing slightly better at a 0.9% drop. Last week's steady march to new all-time highs feels distant today.

^IXIC data by YCharts

Why stocks sold off after a brief morning rally 'Tis the season for economic reports, and that's not always good news.

May's Consumer Price Index rose 4.2% year over year, the highest annual reading since April 2023. Economists had expected these figures, but the inflation report underscored months of rising consumer concerns. Soaring energy prices accounted for more than 60% of the month's overall inflation surge. The ongoing conflict with Iran is pushing energy prices higher with cascading effects on broader inflation.

Markets took the inflation data in stride at first. Then, President Trump threatened increased military action in Iran in retaliation for a drone that downed an Apache helicopter. His Truth Social posts turned the rising market trends sour again.

Image source: Getty Images.

Caterpillar (CAT +1.46%) was the largest drag on the Dow, falling 5.9% and subtracting 331 points from the index. The stock had gained more than 50% year-to-date heading into this week, partly on optimism around AI-related data center construction. Hot inflation and rising bond yields triggered a sharp reversal this week.

Semiconductor stocks continued their recent slide, weighing on the cap-weighted S&P 500 and Nasdaq Composite indexes. Nvidia (NVDA +0.15%) fell 2.7%, erasing $131 billion in market cap, while Broadcom (AVGO 0.85%) dropped 4.8% to shed $86 billion. Neither company had bad news to share, beyond the broader risk-off trend.

From the "things that don't make sense" department: gold fell 3% despite all the geopolitical chaos. Rising yields are apparently a bigger deal than safe-haven demand right now. Bitcoin (BTC +0.10%)on the other hand, actually rose, with the iShares Bitcoin Trust ETF (IBIT 0.03%) up 0.5%. One day does not make a trend, but it's at least worth noting that Bitcoin acts like a safe haven for once.

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Buckle up; SpaceX lands Friday The Federal Reserve will almost certainly hold rates steady at its June meeting, but a hike later this year remains very much on the table. Tech giant Oracle (ORCL 0.05%) reports earnings tonight, giving investors a rare spot of high-profile business data in the space between two earnings seasons. Thursday's wholesale inflation data (the producer-side version of today's consumer-facing inflation figures) will add another data point. Friday brings the SpaceX (expected ticker: SPCX) IPO, poised to be the largest market launch in history.

For now, investors are stuck navigating sticky inflation, unpredictable geopolitics, and a tech sector that can't find its footing. The fundamentals of the companies leading today's decline haven't changed. The unpredictable macro backdrop is what's driving prices right now. Stop me if you've heard this before.

Anders Bylund has positions in Bitcoin, Nvidia, and iShares Bitcoin Trust. The Motley Fool has positions in and recommends Bitcoin, Broadcom, Caterpillar, Nvidia, Oracle, and iShares Bitcoin Trust. The Motley Fool has a disclosure policy.

, /PRNewswire/ -- The Board of Directors of Caterpillar Inc. (NYSE: CAT) voted today to raise the quarterly dividend by 12 cents, an eight percent increase, to one dollar and sixty-three cents ($1.63) per share of common stock payable Aug. 19, 2026, to shareholders of record at the close of business July 20, 2026. Caterpillar expects to continue to return substantially all Machinery, Power & Energy (MP&E) free cash flow to shareholders over time through dividends and share repurchases.

"Our results reflect the execution of our enterprise strategy, combining world-class equipment with advanced technology to solve our customers' toughest challenges," said Caterpillar Chairman and CEO Joe Creed. "That's driving profitable growth, strong MP&E free cash flow and a dividend increase that maintains our place on the S&P 500 Dividend Aristocrats Index."

Caterpillar has paid a cash dividend every year since the company was formed and has paid a quarterly dividend since 1933. Caterpillar has paid higher annual dividends to shareholders for 32 consecutive years and is recognized as a member of the S&P 500 Dividend Aristocrats Index.

About Caterpillar 
For more than a century, Caterpillar has built a better, more sustainable world. With 2025 sales and revenues of $67.6 billion, Caterpillar Inc. is shaping the future as the world's leading manufacturer of construction and mining equipment, off-highway diesel and natural gas engines, industrial gas turbines and diesel-electric locomotives. Backed by one of the largest independent global dealer networks and financing services through Cat Financial, the company's primary business segments: Power & Energy, Construction Industries and Resource Industries are solving customers' toughest challenges through commercial excellence and advanced technology, driven by a highly skilled, dedicated global team. Learn more at www.caterpillar.com.

SOURCE Caterpillar Inc.

The accelerating hype behind artificial intelligence (AI) is perhaps matched only by the rapid growth in demand for the computing power and electricity required to run it all. The need for energy storage and electricity for AI data centers is expanding so rapidly that local power grids are having difficulties keeping pace.

That creates opportunity. Two companies that investors might not expect are capitalizing -- and they offset some risk by having significant dividends: Caterpillar (CAT +1.46%) and Ford Motor Company (F +0.88%).

An AI play overlooked for decades While most investors associate Caterpillar with construction and mining machinery, management sees a lucrative technology opportunity developing with AI: its potential to generate a new revenue stream at higher margins than its traditional business.

The company sells enormous engines, turbines, and generator sets that AI data centers use for both primary and continuous backup power, giving it a faster-growing revenue stream. As you can see in the graphic below, Wall Street has taken notice, and the stock has soared over the past year.

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If you missed out on the one-year surge in Caterpillar shares, there is still growth to be had. "We think [this] is more of a 2027/2028 story than a 2025/2026 story," Citigroup analyst Kyle Menges says, according to Barron's.

What most investors probably aren't aware of is that the company has an autonomous-mining fleet that's one of the largest and most proven in the world. Management's research on autonomous machines started decades ago, and now the company is taking it a step forward after unveiling multiple intelligent-product lines that will include autonomous excavators, loaders, hauling trucks, bulldozers, and compactors driven by a rise in AI.

Caterpillar is an intriguing mix of potential with its products becoming more powerful for its clients through AI and autonomy, while it also benefits from faster-growing segments due to increasing energy and storage demand.

The icing on the cake is that Caterpillar also offers investors safety: It has paid a cash dividend every year since it was formed, a quarterly dividend since 1933, and a higher annual dividend for 32 consecutive years.

Under the radar Similar to Caterpillar, Ford's most-hyped business right now has absolutely nothing to do with producing vehicles. Unbeknownst to many, Ford has spent most of the past year building the foundation for Ford Energy. Ford Energy is a wholly owned subsidiary of the company and will provide battery energy storage systems (BESS) for data centers and other large industrial customers in the U.S.

The Detroit automaker's flagship product, named the Ford Energy DC block, is a 20-foot containerized BESS that comes in two configurations designed to provide its customers with predictable lifetime performance, from a company that is stable enough to assure that it will be around for servicing if necessary.

Image source: Ford Motor Company.

Ford plans to invest roughly $2 billion into its energy business initially, and after working quietly to build out its supply chains and manufacturing sites, it aims to start deliveries in late 2027. Morgan Stanley estimates Ford Energy could generate between $500 million to $600 million of run-rate earnings before interest and taxes at 20 gigawatt hours of production capacity.

Like Caterpillar, Ford offers a measure of safety with a dividend that sits at a 4% yield. And in recent years when cash flow is strong, it's often boosted by a supplemental dividend.

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What it all means Besides rapidly changing the way many businesses operate, AI also offers opportunities for companies that can power its significant demand for energy and its storage. Investors could blindfold themselves and throw a dart and land on any number of projections that suggest the AI data center market and global power demand are expected to surge over the next decade.

And while many will continue to overlook Ford's and Caterpillar's ties to AI and energy, savvy investors understand their potential to generate new revenue streams, higher margins, and potentially better valuations.

Here are three stocks with buy rank and strong momentum characteristics for investors to consider today, June 11:

Hewlett Packard Enterprise Company (HPE - Free Report) : This information technology company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 5% over the last 60 days.

Hewlett Packard Enterprise's shares gained 112% over the last three months compared with the S&P 500’s decline of 11%. The company possesses a Momentum Score of A.

Caterpillar Inc. (CAT - Free Report) : This industrial machinery company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 8.1% over the last 60 days.

Caterpillar’s shares gained 22.4% over the last three months compared with the S&P 500’s decline of 11%. The company possesses a Momentum Score of A.

Fomento Económico Mexicano, S.A.B. de C.V. (FMX - Free Report) : This Coca-Cola bottling company has a Zacks Rank #1 and witnessed the Zacks Consensus Estimate for its current year earnings increasing 26.5% over the last 60 days.

Fomento Economico Mexicano S.A.B. de C.V. Price and Consensus

Fomento Economico Mexicano S.A.B. de C.V. price-consensus-chart | Fomento Economico Mexicano S.A.B. de C.V. Quote

Fomento Económico Mexicano’s shares gained 16.9% over the last three months compared with the S&P 500’s decline of 11%. The company possesses a Momentum Score of A.

See the full list of top ranked stocks here

Learn more about the Momentum score and how it is calculated here.

© Sean Pavone / iStock via Getty Images

On a recent Diet TBPN segment, co-host John Coogan read at length from an Economist piece making a striking claim about where corporate America now lives. The thesis, quoted directly: “Texas is steadily establishing itself as America Inc.’s new center of gravity. No state receives more business investment or is adding more people to its population.” For investors, the implication is that Texas may offer some of the most compelling long-term opportunities in the country, as companies, workers, and investment dollars continue to concentrate there.

The Headquarters Migration Is Real The numbers cited in the segment are notable. From 2020 to 2025, at least 184 companies moved their headquarters to Texas, including Tesla (NASDAQ:TSLA | TSLA Price Prediction) and Caterpillar (NYSE:CAT). The state created roughly a fifth of all net new U.S. jobs during that period. Recently, ExxonMobil‘s (NYSE:XOM) shareholder-approved reincorporation from New Jersey to Texas was a symbolic move for a company that has been physically based in the Dallas area for years.

Some of these drivers are structural. The Tax Foundation’s 2025 State Tax Competitiveness Index ranks Texas 7th overall, with a No. 1 ranking for individual income tax (the state has none). Meanwhile, New York ranks 50th, and California ranks 48th.

Cost of living also reinforces the gap. Texas sits at a regional price parity of 97.057, below the national average of 100, against New York at 107.921 and California at 110.72. For executives modeling payroll and real estate expenses, that 10-13-point spread compounds quickly.

Energy and Data Centers: The Next Layer The relocation story has moved beyond tax arbitrage. Texas’s energy dominance is now fueling an AI-era infrastructure boom. The state is expected to build two-fifths of all utility-scale solar in America this year, and that generation is feeding a data center buildout that increasingly defines where hyperscale compute will live. Large-scale solar, battery storage, and natural gas projects across Texas appear repeatedly in the EIA’s May 2026 Electric Power Monthly construction pipeline, including the 350-MW Chillingham Solar, 240-MW Cattlemen Solar Park, and the 200-MW Destiny Storage project.

That matters because the United States houses roughly 45% of global data centers, with approximately 4,000 facilities located primarily in Virginia, Texas, and California. Data centers grew from 1.9% of total U.S. electricity consumption in 2018 to 4.4% in 2023, with projections of 6.7-12% by 2028. Texas owns generation and transmission flexibility through ERCOT, and the land to host hyperscale campuses.

A Texas Stock Exchange Adds Financial Infrastructure The most visible sign of Texas’ growing influence may be happening in the capital markets. A standalone Texas Stock Exchange is set to launch this summer, joining existing NYSE and NASDAQ operations in the state. As Coogan noted, the development highlights how Texas is becoming a larger player in finance, not just energy and technology.

Donald Trump called the Texas Stock Exchange “an unbelievably bad thing for his hometown of New York,” referring to how New York could lose some competitiveness as America’s financial hub. Trump’s own social media venture was the first business to list on the NYSE’s new Texas branch.

Key Takeaways Texas’s rise now extends well beyond remote workers chasing zero income tax. Business investment, population growth, jobs, energy generation, and now market infrastructure are all adding up to make Texas look poised for a bright future. Housing starts at a 1.465 million annualized pace in April 2026 hint that construction is keeping up.

For investors, the key question is where this trend creates opportunities. Areas that could benefit include Texas-focused real estate, utilities and power providers, energy infrastructure companies, and data center operators. If more businesses, workers, and capital continue moving to Texas, those sectors could see outsized growth in the years ahead.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Newmont Corporation (NEM - Free Report) Colorado-based Newmont Corporation is one of the world's largest producers of gold with several active mines in Nevada, Peru, Australia and Ghana. As of Dec 31, 2025, Newmont had attributable gold reserves of 118.2 million ounces and resources of 148.7 million ounces. Its attributable gold production for 2025 was around 5.89 million ounces.

NEM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Momentum investors should take note of this Basic Materials stock. NEM has a Momentum Style Score of A, and shares are up 1.6% over the past four weeks.

Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.94 to $9.72 per share. NEM also boasts an average earnings surprise of +33.6%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, NEM should be on investors' short list.

Newmont Corporation (NEM - Free Report) closed at $109.81 in the latest trading session, marking a +1.46% move from the prior day. This move outpaced the S&P 500's daily gain of 0.22%. At the same time, the Dow added 0.72%, and the tech-heavy Nasdaq gained 0.21%.

Prior to today's trading, shares of the gold and copper miner had lost 2.57% lagged the Basic Materials sector's gain of 2.87% and the S&P 500's gain of 6.04%.

Analysts and investors alike will be keeping a close eye on the performance of Newmont Corporation in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.3, showcasing a 60.84% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $6.19 billion, up 16.38% from the year-ago period.

NEM's full-year Zacks Consensus Estimates are calling for earnings of $9.72 per share and revenue of $27.25 billion. These results would represent year-over-year changes of +41.07% and +20.2%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Newmont Corporation. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 3.75% upward. Currently, Newmont Corporation is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Newmont Corporation has a Forward P/E ratio of 11.14 right now. This signifies a premium in comparison to the average Forward P/E of 9.54 for its industry.

The Mining - Gold industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 156, placing it within the bottom 37% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NEM in the coming trading sessions, be sure to utilize Zacks.com.

Newmont Corporation remains a Buy, supported by robust financials, a new $6B buyback authorization, and long-term gold price tailwinds. NEM delivered a record $3.14B FCF in Q1 despite a >15% production drop, maintaining strong liquidity and advancing organic growth projects. 2026 is expected to be a production trough, with growth resuming in 2027 as key projects come online, and management targets 6M oz gold output.

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

Zacks Premium includes access to the Zacks Style Scores as well.

What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.

That's where the Style Scores come in.

To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Newmont Corporation (NEM - Free Report) Colorado-based Newmont Corporation is one of the world's largest producers of gold with several active mines in Nevada, Peru, Australia and Ghana. As of Dec 31, 2025, Newmont had attributable gold reserves of 118.2 million ounces and resources of 148.7 million ounces. Its attributable gold production for 2025 was around 5.89 million ounces.

NEM is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 10.85; value investors should take notice.

For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.37 to $9.91 per share. NEM boasts an average earnings surprise of +33.6%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, NEM should be on investors' short list.