Lamb Weston (LW) Gains As Market Dips: What You Should Know
The latest trading session saw Lamb Weston (LW) ending at $102.24, denoting a +0.19% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.12% for the day. On the other hand, the Dow registered a loss of 0.25%, and the technology-centric Nasdaq decreased by 0.41%.
The the stock of frozen foods supplier has fallen by 3.82% in the past month, lagging the Consumer Staples sector's loss of 1.3% and the S&P 500's gain of 4.83%.
Market participants will be closely following the financial results of Lamb Weston in its upcoming release. The company plans to announce its earnings on April 4, 2024. In that report, analysts expect Lamb Weston to post earnings of $1.42 per share. This would mark a year-over-year decline of 0.7%. Our most recent consensus estimate is calling for quarterly revenue of $1.65 billion, up 31.41% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.94 per share and a revenue of $6.86 billion, representing changes of +26.92% and +28.26%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Lamb Weston. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Lamb Weston is currently a Zacks Rank #2 (Buy).
From a valuation perspective, Lamb Weston is currently exchanging hands at a Forward P/E ratio of 17.18. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 17.18.
We can also see that LW currently has a PEG ratio of 1.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2 based on yesterday's closing prices.
The Food - Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 148, positioning it in the bottom 42% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Lamb Weston (LW) : Free Stock Analysis Report
