Lamb Weston (LW) Beats Stock Market Upswing: What Investors Need to Know
Lamb Weston (LW) closed the latest trading day at $102.61, indicating a +1.63% change from the previous session's end. This move outpaced the S&P 500's daily gain of 0.39%. Meanwhile, the Dow experienced a rise of 0.43%, and the technology-dominated Nasdaq saw an increase of 0.2%.
Shares of the frozen foods supplier witnessed a gain of 7.32% over the previous month, beating the performance of the Consumer Staples sector with its gain of 1.75% and the S&P 500's gain of 5.28%.
The investment community will be closely monitoring the performance of Lamb Weston in its forthcoming earnings report. The company is scheduled to release its earnings on January 4, 2024. On that day, Lamb Weston is projected to report earnings of $1.40 per share, which would represent year-over-year growth of 9.38%. Alongside, our most recent consensus estimate is anticipating revenue of $1.69 billion, indicating a 32.61% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.84 per share and a revenue of $6.86 billion, indicating changes of +24.79% and +28.29%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lamb Weston. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Lamb Weston presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Lamb Weston currently has a Forward P/E ratio of 17.28. For comparison, its industry has an average Forward P/E of 17.07, which means Lamb Weston is trading at a premium to the group.
We can also see that LW currently has a PEG ratio of 1.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Food - Miscellaneous industry stood at 2.42 at the close of the market yesterday.
The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 141, this industry ranks in the bottom 45% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Lamb Weston (LW) : Free Stock Analysis Report
