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Lamb Weston (LW) Gains But Lags Market: What You Should Know

Lamb Weston (LW) closed the most recent trading day at $112.07, moving +0.78% from the previous trading session. This change lagged the S&P 500's 0.99% gain on the day.

Coming into today, shares of the frozen foods supplier had lost 0.32% in the past month. In that same time, the Consumer Staples sector lost 6.84%, while the S&P 500 gained 0.42%.

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 $0.98 per share, which would represent year-over-year growth of 50.77%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.65 billion, up 43.46% from the year-ago period.

Any recent changes to analyst estimates for Lamb Weston should also be noted by investors. 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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Lamb Weston currently has a Zacks Rank of #1 (Strong Buy).

In terms of valuation, Lamb Weston is currently trading at a Forward P/E ratio of 24.67. This represents a premium compared to its industry's average Forward P/E of 17.47.

It is also worth noting that LW currently has a PEG ratio of 0.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LW's industry had an average PEG ratio of 2.65 as of yesterday's close.

The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 46, putting it in the top 19% 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.

To follow LW in the coming trading sessions, be sure to utilize Zacks.com.

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Lamb Weston (LW) : Free Stock Analysis Report

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