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Lamb Weston (LW) Gains As Market Dips: What You Should Know
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Lamb Weston (LW - Free Report) closed at $96.27 in the latest trading session, marking a +1.88% move from the prior day. This move outpaced the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq gained 0.06%.
Heading into today, shares of the frozen foods supplier had lost 16.15% over the past month, lagging the Consumer Staples sector's loss of 4.25% and the S&P 500's loss of 2.85% in that time.
Lamb Weston will be looking to display strength as it nears its next earnings release. In that report, analysts expect Lamb Weston to post earnings of $1.08 per share. This would mark year-over-year growth of 44%. Our most recent consensus estimate is calling for quarterly revenue of $1.59 billion, up 41.27% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.21 per share and revenue of $6.82 billion, which would represent changes of +11.32% and +27.46%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Lamb Weston. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 6.2% higher. Lamb Weston is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Lamb Weston is holding a Forward P/E ratio of 18.14. This represents a premium compared to its industry's average Forward P/E of 15.93.
Investors should also note that LW has a PEG ratio of 1.49 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 2.55 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 105, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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) Gains As Market Dips: What You Should Know
Lamb Weston (LW - Free Report) closed at $96.27 in the latest trading session, marking a +1.88% move from the prior day. This move outpaced the S&P 500's daily loss of 0.28%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq gained 0.06%.
Heading into today, shares of the frozen foods supplier had lost 16.15% over the past month, lagging the Consumer Staples sector's loss of 4.25% and the S&P 500's loss of 2.85% in that time.
Lamb Weston will be looking to display strength as it nears its next earnings release. In that report, analysts expect Lamb Weston to post earnings of $1.08 per share. This would mark year-over-year growth of 44%. Our most recent consensus estimate is calling for quarterly revenue of $1.59 billion, up 41.27% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.21 per share and revenue of $6.82 billion, which would represent changes of +11.32% and +27.46%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Lamb Weston. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 6.2% higher. Lamb Weston is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Lamb Weston is holding a Forward P/E ratio of 18.14. This represents a premium compared to its industry's average Forward P/E of 15.93.
Investors should also note that LW has a PEG ratio of 1.49 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 2.55 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 105, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.