Lamb Weston (LW) Gains As Market Dips: What You Should Know
In the latest trading session, Lamb Weston (LW) closed at $87.07, marking a +0.9% move from the previous day. This change outpaced the S&P 500's 0.19% loss on the day. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq lost 0.09%.
Prior to today's trading, shares of the frozen foods supplier had gained 1.3% over the past month. This has lagged the Consumer Staples sector's gain of 6.65% and the S&P 500's gain of 4.7% in that time.
Wall Street will be looking for positivity from Lamb Weston as it approaches its next earnings report date. This is expected to be January 5, 2023. In that report, analysts expect Lamb Weston to post earnings of $0.74 per share. This would mark year-over-year growth of 48%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.16 billion, up 15.15% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.03 per share and revenue of $4.7 billion. These totals would mark changes of +45.67% and +14.64%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Lamb Weston. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Lamb Weston currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Lamb Weston is holding a Forward P/E ratio of 28.45. Its industry sports an average Forward P/E of 19.38, so we one might conclude that Lamb Weston is trading at a premium comparatively.
It is also worth noting that LW currently has a PEG ratio of 1.06. 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. LW's industry had an average PEG ratio of 2.92 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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) : Free Stock Analysis Report
