Lamb Weston (LW) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest market close, Lamb Weston (LW) reached $102.05, with a -0.6% movement compared to the previous day. The stock fell short of the S&P 500, which registered a loss of 0.38% for the day. Elsewhere, the Dow lost 0.16%, while the tech-heavy Nasdaq lost 0.13%.
Coming into today, shares of the frozen foods supplier had lost 1.46% in the past month. In that same time, the Consumer Staples sector gained 2.5%, while the S&P 500 gained 4.74%.
The investment community will be closely monitoring the performance of Lamb Weston in its forthcoming earnings report. The company is predicted to post an EPS of $1.42, indicating a 0.7% decline compared to the equivalent quarter last year. 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 note any recent changes to analyst estimates for Lamb Weston. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lamb Weston is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Lamb Weston is presently being traded at a Forward P/E ratio of 17.28. This expresses a premium compared to the average Forward P/E of 17.23 of its industry.
We can additionally observe that LW currently boasts a PEG ratio of 1.16. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.19 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 160, finds itself in the bottom 37% echelons of all 250+ industries.
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.
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
