The vegan lifestyle has been gaining attention for a couple decades now, but has really risen in popularity recently due to health and environmental concerns. This has led to a rise in vegan food and beverage products, but many of the stocks of companies that produce these products are overvalued. Beyond Meat (NASDAQ:BYND), Oatly Group (NASDAQ:OTLY), and Very Good Food Company (VRYYF) are three such stocks and should be avoided for now.Veganism has significantly grown in popularity over the past decade. However, money is moving out of vegan stocks for several reasons. Profit-taking, general uneasiness, and supply chain issues are taking a toll on vegan stocks and the market as a whole.
Even if you eat vegan or are considering veganism, it might not be in your financial interest to put your money where your mouth is. Unless you are willing to abide by the tried-and-true buy-and-hold strategy, investing in vegan stocks is not the most prudent use of your money.
Beyond Meat (BYND), Oatly Group (OTLY), and Very Good Food Company (VRYYF) are three examples of overvalued vegan stocks quickly growing in popularity yet lacking in investing merit. Let's take a look at why investors should avoid each of these stocks.