Lamb Weston (LW) Laps the Stock Market: Here's Why
Lamb Weston (LW) ended the recent trading session at $108.13, demonstrating a +0.58% swing from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.04%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq decreased by 0.03%.
Prior to today's trading, shares of the frozen foods supplier had gained 10.23% over the past month. This has outpaced the Consumer Staples sector's gain of 2.65% and the S&P 500's gain of 5.28% in that time.
The investment community will be paying close attention to the earnings performance of Lamb Weston in its upcoming release. The company is slated to reveal its earnings on January 4, 2024. The company is forecasted to report an EPS of $1.40, showcasing a 9.38% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.7 billion, indicating a 32.82% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.84 per share and a revenue of $6.85 billion, signifying shifts of +24.79% and +28.04%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Lamb Weston. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% lower within the past month. Currently, Lamb Weston is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Lamb Weston is currently being traded at a Forward P/E ratio of 18.41. This expresses a premium compared to the average Forward P/E of 17.19 of its industry.
We can additionally observe that LW currently boasts a PEG ratio of 1.38. 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 2.4 based on yesterday's closing prices.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 144, finds itself in the bottom 43% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Lamb Weston (LW) : Free Stock Analysis Report
