Yahoo Finance Lamb Weston (LW) Outpaces Stock Market Gains: What You Should Know
Lamb Weston (LW) closed the most recent trading day at $83.25, moving +1.93% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.45%, and the Nasdaq, a tech-heavy index, lost 0.46%.
Coming into today, shares of the frozen foods supplier had gained 10.97% in the past month. In that same time, the Consumer Staples sector gained 4.94%, while the S&P 500 gained 12.15%.
Lamb Weston will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.52, up 160% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.14 billion, up 15.96% from the year-ago period.
LW's full-year Zacks Consensus Estimates are calling for earnings of $2.79 per share and revenue of $4.74 billion. These results would represent year-over-year changes of +34.13% and +15.64%, respectively.
Any recent changes to analyst estimates for Lamb Weston should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Within the past 30 days, our consensus EPS projection has moved 1.93% lower. Lamb Weston is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Lamb Weston currently has a Forward P/E ratio of 29.25. This valuation marks a premium compared to its industry's average Forward P/E of 18.36.
Meanwhile, LW's PEG ratio is currently 1.25. 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. Food - Miscellaneous stocks are, on average, holding a PEG ratio of 2.89 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 135, putting it in the bottom 47% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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