Lamb Weston (LW) Increases Despite Market Slip: Here's What You Need to Know
Lamb Weston (LW) closed the most recent trading day at $102.46, moving +1.53% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.54%. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw a decrease of 0.84%.
The the stock of frozen foods supplier has risen by 7.26% in the past month, leading the Consumer Staples sector's gain of 5.52% and undershooting the S&P 500's gain of 8.62%.
The investment community will be paying close attention to the earnings performance of Lamb Weston in its upcoming release. The company is predicted to post an EPS of $1.40, indicating a 9.38% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.69 billion, indicating a 32.61% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.84 per share and revenue of $6.86 billion. These totals would mark changes of +24.79% and +28.29%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Lamb Weston. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lamb Weston is currently sporting a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Lamb Weston is currently being traded at a Forward P/E ratio of 17.27. For comparison, its industry has an average Forward P/E of 16.81, which means Lamb Weston is trading at a premium to the group.
Meanwhile, LW's PEG ratio is currently 1.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.43 based on yesterday's closing prices.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Lamb Weston (LW) : Free Stock Analysis Report
