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Lamb Weston (LW) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, Lamb Weston (LW - Free Report) closed at $97.99, marking a -1.35% move from the previous day. This change lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.12%.
Heading into today, shares of the frozen foods supplier had lost 11.62% over the past month, lagging the Consumer Staples sector's gain of 0.89% and the S&P 500's gain of 1.66% in that time.
Wall Street will be looking for positivity from Lamb Weston as it approaches its next earnings report date. In that report, analysts expect Lamb Weston to post earnings of $1.10 per share. This would mark year-over-year growth of 46.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.56 billion, up 38.33% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.07 per share and revenue of $6.86 billion, which would represent changes of +8.33% and +28.17%, respectively, from the prior year.
Any recent changes to analyst estimates for Lamb Weston should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.18% higher within the past month. Lamb Weston is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Lamb Weston currently has a Forward P/E ratio of 19.6. For comparison, its industry has an average Forward P/E of 16.7, which means Lamb Weston is trading at a premium to the group.
Investors should also note that LW has a PEG ratio of 1.61 right now. 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. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.57 based on yesterday's closing prices.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Lamb Weston (LW - Free Report) closed at $97.99, marking a -1.35% move from the previous day. This change lagged the S&P 500's daily gain of 0.03%. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, added 0.12%.
Heading into today, shares of the frozen foods supplier had lost 11.62% over the past month, lagging the Consumer Staples sector's gain of 0.89% and the S&P 500's gain of 1.66% in that time.
Wall Street will be looking for positivity from Lamb Weston as it approaches its next earnings report date. In that report, analysts expect Lamb Weston to post earnings of $1.10 per share. This would mark year-over-year growth of 46.67%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.56 billion, up 38.33% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.07 per share and revenue of $6.86 billion, which would represent changes of +8.33% and +28.17%, respectively, from the prior year.
Any recent changes to analyst estimates for Lamb Weston should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 2.18% higher within the past month. Lamb Weston is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Lamb Weston currently has a Forward P/E ratio of 19.6. For comparison, its industry has an average Forward P/E of 16.7, which means Lamb Weston is trading at a premium to the group.
Investors should also note that LW has a PEG ratio of 1.61 right now. 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. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.57 based on yesterday's closing prices.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 104, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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.