Lamb Weston (LW) Stock Declines While Market Improves: Some Information for Investors
The most recent trading session ended with Lamb Weston (LW) standing at $102.85, reflecting a -0.72% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.96%. Meanwhile, the Dow gained 0.4%, and the Nasdaq, a tech-heavy index, added 1.3%.
The frozen foods supplier's stock has dropped by 4.36% in the past month, falling short of the Consumer Staples sector's gain of 0.45% and the S&P 500's gain of 3.69%.
Investors will be eagerly watching for the performance of Lamb Weston in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.42, showcasing a 0.7% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.65 billion, reflecting a 31.41% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.94 per share and a revenue of $6.86 billion, signifying shifts of +26.92% and +28.26%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Lamb Weston. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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, 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 has moved 0.42% lower. Right now, Lamb Weston possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Lamb Weston is currently being traded at a Forward P/E ratio of 17.44. This expresses a premium compared to the average Forward P/E of 17.23 of its industry.
One should further note that LW currently holds a PEG ratio of 1.17. 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. LW's industry had an average PEG ratio of 2.33 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 147, this industry ranks in the bottom 42% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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
