Lamb Weston (LW) Suffers a Larger Drop Than the General Market: Key Insights
In the latest market close, Lamb Weston (LW) reached $101.33, with a -1.56% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.29%. Elsewhere, the Dow lost 0.35%, while the tech-heavy Nasdaq lost 0.3%.
Prior to today's trading, shares of the frozen foods supplier had gained 0.09% over the past month. This has lagged the Consumer Staples sector's gain of 3.48% and the S&P 500's gain of 4.42% in that time.
The upcoming earnings release of Lamb Weston will be of great interest to investors. The company's earnings report is expected on April 4, 2024. It is anticipated that the company will report an EPS of $1.42, marking a 0.7% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $1.65 billion, showing a 31.41% escalation compared to the year-ago quarter.
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 pay attention to any latest changes in analyst estimates for Lamb Weston. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. As of now, Lamb Weston holds a Zacks Rank of #3 (Hold).
In the context of valuation, Lamb Weston is at present trading with a Forward P/E ratio of 17.33. This expresses no noticeable deviation compared to the average Forward P/E of 17.33 of its industry.
One should further note that LW currently holds a PEG ratio of 1.16. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Food - Miscellaneous was holding an average PEG ratio of 2.01 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 36% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Lamb Weston (LW) : Free Stock Analysis Report
