Lamb Weston (LW) Rises As Market Takes a Dip: Key Facts
The latest trading session saw Lamb Weston (LW) ending at $103.17, denoting a +0.42% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.14% for the day. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, added 0.17%.
Heading into today, shares of the frozen foods supplier had lost 0.98% over the past month, lagging the Consumer Staples sector's gain of 1.07% and the S&P 500's gain of 5.34% in that time.
Investors will be eagerly watching for the performance of Lamb Weston in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 4, 2024. The company is expected to report EPS of $1.41, down 1.4% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.65 billion, showing a 31.41% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $5.97 per share and a revenue of $6.86 billion, representing changes of +27.56% and +28.26%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lamb Weston. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Lamb Weston is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Lamb Weston is currently trading at a Forward P/E ratio of 17.22. This denotes a discount relative to the industry's average Forward P/E of 17.5.
Investors should also note that LW has a PEG ratio of 1.15 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Food - Miscellaneous industry currently had an average PEG ratio of 2 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Lamb Weston (LW) : Free Stock Analysis Report
