The Zacks Analyst Blog Highlights: BYND, ZM, KRTX, TPTX And SILK

For Immediate Release

Chicago, IL –December 26, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Beyond Meat, Inc. (NASDAQ:BYND) , Zoom Video Communications, Inc. (NASDAQ:ZM) , Karuna Therapeutics, Inc. (NASDAQ:KRTX) , Turning Point Therapeutics, Inc. (NASDAQ:TPTX) and Silk Road Medical, Inc (NASDAQ:SILK) .

Here are highlights from Tuesday’s Analyst Blog:

5 Best Performing IPOs of 2019

A host of high-profile private companies hit Wall Street this year, debuting across various prominent sectors. These “unicorns,” Wall Street’s term for a fast-growing startup company, definitely have the potential to make it big, given their impressive journey since their initial public offerings (IPOs).

Let us, thus, take a look at some of the best IPOs that took investors aback with their performance.

How Have the IPOs Fared So Far This Year?

Although many well-known companies such as Uber (NYSE:UBER), Lyft (NASDAQ:LYFT) and Pinterest (NYSE:PINS) have joined the long list of IPOs this year, their price performances failed to make an impact on the U.S. stock market.

However, thanks to the better-than-expected performance of various other IPOs, the Renaissance IPO ETF (IPO), which is a basket of newly public companies, soared 33.8% on a year-to-date basis. The S&P 500, in comparison, has increased 28.4% in the same timeframe.

According to Renaissance Capital, more than 50% of the newly listed companies were trading higher than their issue price at the end of the year, compared with about 40% last year.

2019’s IPOs Could Perform Better Ahead: Here’s Why

Taking a look at the price performances of some of the IPOs this year, one needs to consider the nature of products and services these companies offer and their respective business models.

For example, healthcare and technology sectors saw some of the best IPOs for the fifth consecutive year in 2019. Medical device companies and consumer staple companies that offered innovative, high-on-consumer-demand products, and technology companies particularly stood out.

In addition, the newly publicly traded companies’ strong balance sheet, upbeat cash flows and rising revenues were also instrumental in boosting their price performances so far this year. Needless to say, these factors could help the stocks reap further gains ahead.

5 Best IPOs of 2019

We have, therefore, chosen five stocks that went public this year and have performed impressively so far. All of these stocks carry a Zacks Rank #2 (Buy) or 3 (Hold).

Beyond Meat, Inc. is a manufacturer of plant-based meat substitutes. The El Segundo, CA-based company offers alternative meat products in the platforms of beef, pork and poultry.

Offer Date: May 2, 2019

IPO Price: $25

Beyond Meat witnessed its stock price surge 163% during the trading session on May 2, increasing from $25 a share to $65.75. The company’s share prices have been up 16.4% since then, settling at $77.73 at the end of Dec 24. Beyond Meat raised about $240 million through its IPO’s sale of 9.6 million shares.

The demand for Beyond Meat’s products is primarily driven by traditional meat-eaters who seek plant-based meat alternatives for health reasons or out of concern for environmental impact. In addition, the company is gaining from high-end partnerships such as with Dunkin' Brands, Dave & Buster's Entertainment and YUM! Brands.

The Zacks Consensus Estimate for the company’s current-year earnings has risen 13% over the past 60 days. Beyond Meat carries a Zacks Rank #2. You can see Zacks Investment Research

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Written By: Zacks Investment Research