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Lamb Weston (LW) Outpaces Stock Market Gains: What You Should Know
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Lamb Weston (LW - Free Report) closed at $115 in the latest trading session, marking a +1.45% move from the prior day. This change outpaced the S&P 500's 0.37% gain on the day. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 1.26%.
Prior to today's trading, shares of the frozen foods supplier had gained 3.71% over the past month. This has outpaced the Consumer Staples sector's loss of 1.11% and lagged the S&P 500's gain of 4.31% in that time.
Lamb Weston will be looking to display strength as it nears its next earnings release, which is expected to be July 25, 2023. In that report, analysts expect Lamb Weston to post earnings of $1.06 per share. This would mark year-over-year growth of 63.08%. Our most recent consensus estimate is calling for quarterly revenue of $1.67 billion, up 45.17% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Lamb Weston. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. The Zacks Consensus EPS estimate has moved 0.4% higher within the past month. Lamb Weston currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Lamb Weston has a Forward P/E ratio of 22.85 right now. This represents a premium compared to its industry's average Forward P/E of 18.06.
Investors should also note that LW has a PEG ratio of 0.53 right now. 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. The Food - Miscellaneous was holding an average PEG ratio of 2.42 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Lamb Weston (LW) Outpaces Stock Market Gains: What You Should Know
Lamb Weston (LW - Free Report) closed at $115 in the latest trading session, marking a +1.45% move from the prior day. This change outpaced the S&P 500's 0.37% gain on the day. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 1.26%.
Prior to today's trading, shares of the frozen foods supplier had gained 3.71% over the past month. This has outpaced the Consumer Staples sector's loss of 1.11% and lagged the S&P 500's gain of 4.31% in that time.
Lamb Weston will be looking to display strength as it nears its next earnings release, which is expected to be July 25, 2023. In that report, analysts expect Lamb Weston to post earnings of $1.06 per share. This would mark year-over-year growth of 63.08%. Our most recent consensus estimate is calling for quarterly revenue of $1.67 billion, up 45.17% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Lamb Weston. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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. The Zacks Consensus EPS estimate has moved 0.4% higher within the past month. Lamb Weston currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Lamb Weston has a Forward P/E ratio of 22.85 right now. This represents a premium compared to its industry's average Forward P/E of 18.06.
Investors should also note that LW has a PEG ratio of 0.53 right now. 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. The Food - Miscellaneous was holding an average PEG ratio of 2.42 at yesterday's closing price.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 46, which puts it in the top 19% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.