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Lamb Weston (LW) Gains But Lags Market: What You Should Know
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Lamb Weston (LW - Free Report) closed the most recent trading day at $96.41, moving +0.06% from the previous trading session. This change lagged the S&P 500's 0.63% gain on the day. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 0.84%.
Prior to today's trading, shares of the frozen foods supplier had lost 5.61% over the past month. This has lagged the Consumer Staples sector's loss of 3.92% and the S&P 500's loss of 3.37% in that time.
Lamb Weston will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.07, up 42.67% from the prior-year quarter. 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.
It is also important to note the recent changes to analyst estimates for Lamb Weston. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 2.88% higher. Lamb Weston is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Lamb Weston has a Forward P/E ratio of 18.5 right now. This represents a premium compared to its industry's average Forward P/E of 15.76.
Investors should also note that LW has a PEG ratio of 1.52 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Food - Miscellaneous was holding an average PEG ratio of 2.59 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% 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.
To follow LW in the coming trading sessions, be sure to utilize Zacks.com.
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Lamb Weston (LW) Gains But Lags Market: What You Should Know
Lamb Weston (LW - Free Report) closed the most recent trading day at $96.41, moving +0.06% from the previous trading session. This change lagged the S&P 500's 0.63% gain on the day. Meanwhile, the Dow gained 0.62%, and the Nasdaq, a tech-heavy index, added 0.84%.
Prior to today's trading, shares of the frozen foods supplier had lost 5.61% over the past month. This has lagged the Consumer Staples sector's loss of 3.92% and the S&P 500's loss of 3.37% in that time.
Lamb Weston will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.07, up 42.67% from the prior-year quarter. 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.
It is also important to note the recent changes to analyst estimates for Lamb Weston. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 2.88% higher. Lamb Weston is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that Lamb Weston has a Forward P/E ratio of 18.5 right now. This represents a premium compared to its industry's average Forward P/E of 15.76.
Investors should also note that LW has a PEG ratio of 1.52 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Food - Miscellaneous was holding an average PEG ratio of 2.59 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% 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.
To follow LW in the coming trading sessions, be sure to utilize Zacks.com.