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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 at $98.92 in the latest trading session, marking a +0.53% move from the prior day. The stock lagged the S&P 500's daily gain of 0.67%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 1.14%.
Prior to today's trading, shares of the frozen foods supplier had gained 1.67% over the past month. This has outpaced the Consumer Staples sector's loss of 3.7% and the S&P 500's loss of 0.73% in that time.
Investors will be hoping for strength from Lamb Weston as it approaches its next earnings release. On that day, Lamb Weston is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 44%. Our most recent consensus estimate is calling for quarterly revenue of $1.59 billion, up 41.15% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.26 per share and revenue of $6.82 billion, which would represent changes of +12.39% and +27.42%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Lamb Weston. These recent revisions tend to reflect the evolving nature of short-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. 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. Within the past 30 days, our consensus EPS projection has moved 0.96% higher. Lamb Weston is currently a Zacks Rank #3 (Hold).
Investors should also note Lamb Weston's current valuation metrics, including its Forward P/E ratio of 18.71. Its industry sports an average Forward P/E of 15.78, so we one might conclude that Lamb Weston is trading at a premium comparatively.
We can also see that LW currently has a PEG ratio of 1.54. 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 2.45 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 155, putting it in the bottom 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Lamb Weston (LW) Gains But Lags Market: What You Should Know
Lamb Weston (LW - Free Report) closed at $98.92 in the latest trading session, marking a +0.53% move from the prior day. The stock lagged the S&P 500's daily gain of 0.67%. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, added 1.14%.
Prior to today's trading, shares of the frozen foods supplier had gained 1.67% over the past month. This has outpaced the Consumer Staples sector's loss of 3.7% and the S&P 500's loss of 0.73% in that time.
Investors will be hoping for strength from Lamb Weston as it approaches its next earnings release. On that day, Lamb Weston is projected to report earnings of $1.08 per share, which would represent year-over-year growth of 44%. Our most recent consensus estimate is calling for quarterly revenue of $1.59 billion, up 41.15% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $5.26 per share and revenue of $6.82 billion, which would represent changes of +12.39% and +27.42%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Lamb Weston. These recent revisions tend to reflect the evolving nature of short-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. 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. Within the past 30 days, our consensus EPS projection has moved 0.96% higher. Lamb Weston is currently a Zacks Rank #3 (Hold).
Investors should also note Lamb Weston's current valuation metrics, including its Forward P/E ratio of 18.71. Its industry sports an average Forward P/E of 15.78, so we one might conclude that Lamb Weston is trading at a premium comparatively.
We can also see that LW currently has a PEG ratio of 1.54. 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 2.45 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 155, putting it in the bottom 39% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.