Why the Market Dipped But Lamb Weston (LW) Gained Today
Lamb Weston (LW) closed at $98.14 in the latest trading session, marking a +0.83% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.2%. Meanwhile, the Dow lost 0.18%, and the Nasdaq, a tech-heavy index, lost 0.59%.
The frozen foods supplier's stock has climbed by 11.65% in the past month, exceeding the Consumer Staples sector's gain of 4.96% and the S&P 500's gain of 7.87%.
The investment community will be paying close attention to the earnings performance of Lamb Weston in its upcoming release. 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. At the same time, our most recent consensus estimate is projecting a revenue of $1.69 billion, reflecting a 32.61% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.84 per share and a revenue of $6.86 billion, indicating changes of +24.79% and +28.29%, respectively, from the former year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lamb Weston. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Lamb Weston is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, Lamb Weston is holding a Forward P/E ratio of 16.66. This represents a premium compared to its industry's average Forward P/E of 16.49.
Also, we should mention that LW has a PEG ratio of 1.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Food - Miscellaneous industry was having an average PEG ratio of 2.35.
The Food - Miscellaneous industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 138, this industry ranks in the bottom 46% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow LW in the coming trading sessions, be sure to utilize Zacks.com.
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Lamb Weston (LW) : Free Stock Analysis Report
