It's a great time to buy top stocks at low prices before they start soaring, but it's important to know the difference between undervalued stocks and stocks that are cheap because pessimism is appropriate. With that in mind, I'm going to recommend an undervalued stock to buy and a cheap stock to avoid, both in the food industry. A few stocks from 2021 caught investor attention quickly, but you can be forgiven for not noticing some of stocks with great potential that faded next to the hype of others.
Altria (NYSE: MO) and Beyond Meat (NASDAQ: BYND) have both been struggling over the past few years. Altria, the largest tobacco company in the United States, faces a persistent decline in adult smoking rates. Over the past four years, Altria's stock has declined 16% as Beyond Meat's stock plunged 90%.
Shares of Beyond Meat (NASDAQ: BYND) were sizzling in November as the stock heated up after a long slump. Investors were encouraged by news of layoffs and further cost cuts in its third-quarter earnings report, and the stock also benefited from the broader market gains, as interest rates appears to have peaked and inflation is slowing. As the chart shows, Beyond Meat stock soared on Nov. 2, gaining 18.4% after it gave a disappointing preliminary earnings report for its third quarter, but said that it would slash costs again.