Is Lamb Weston (LW) Stock Outpacing Its Consumer Staples Peers This Year?
Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Lamb Weston (LW) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Consumer Staples peers, we might be able to answer that question.
Lamb Weston is one of 193 companies in the Consumer Staples group. The Consumer Staples group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Lamb Weston is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for LW's full-year earnings has moved 2.1% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, LW has moved about 1.8% on a year-to-date basis. In comparison, Consumer Staples companies have returned an average of -5.8%. This means that Lamb Weston is outperforming the sector as a whole this year.
One other Consumer Staples stock that has outperformed the sector so far this year is WD-40 (WDFC). The stock is up 14.8% year-to-date.
In WD-40's case, the consensus EPS estimate for the current year increased 1.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
To break things down more, Lamb Weston belongs to the Food - Miscellaneous industry, a group that includes 45 individual companies and currently sits at #183 in the Zacks Industry Rank. On average, stocks in this group have lost 6.5% this year, meaning that LW is performing better in terms of year-to-date returns.
On the other hand, WD-40 belongs to the Consumer Products - Staples industry. This 30-stock industry is currently ranked #162. The industry has moved -20.2% year to date.
Investors interested in the Consumer Staples sector may want to keep a close eye on Lamb Weston and WD-40 as they attempt to continue their solid performance.
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