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Lamb Weston (LW) Dips More Than Broader Markets: What You Should Know
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Lamb Weston (LW - Free Report) closed at $113.11 in the latest trading session, marking a -1.04% move from the prior day. This move lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 2.93%.
Heading into today, shares of the frozen foods supplier had gained 4.59% over the past month, outpacing the Consumer Staples sector's gain of 2.18% and the S&P 500's gain of 4.22% in that time.
Investors will be hoping for strength from Lamb Weston as it approaches its next earnings release, which is expected to be July 25, 2023. The company is expected to report EPS of $1.06, up 63.08% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.67 billion, up 45.17% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Lamb Weston. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 has moved 0.4% higher. Lamb Weston is currently a Zacks Rank #2 (Buy).
Digging into valuation, Lamb Weston currently has a Forward P/E ratio of 23.04. This represents a premium compared to its industry's average Forward P/E of 17.65.
It is also worth noting that LW currently has a PEG ratio of 0.54. 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. The Food - Miscellaneous industry currently had an average PEG ratio of 2.78 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 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.
To follow LW in the coming trading sessions, be sure to utilize Zacks.com.
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Lamb Weston (LW) Dips More Than Broader Markets: What You Should Know
Lamb Weston (LW - Free Report) closed at $113.11 in the latest trading session, marking a -1.04% move from the prior day. This move lagged the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 2.93%.
Heading into today, shares of the frozen foods supplier had gained 4.59% over the past month, outpacing the Consumer Staples sector's gain of 2.18% and the S&P 500's gain of 4.22% in that time.
Investors will be hoping for strength from Lamb Weston as it approaches its next earnings release, which is expected to be July 25, 2023. The company is expected to report EPS of $1.06, up 63.08% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.67 billion, up 45.17% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Lamb Weston. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
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 has moved 0.4% higher. Lamb Weston is currently a Zacks Rank #2 (Buy).
Digging into valuation, Lamb Weston currently has a Forward P/E ratio of 23.04. This represents a premium compared to its industry's average Forward P/E of 17.65.
It is also worth noting that LW currently has a PEG ratio of 0.54. 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. The Food - Miscellaneous industry currently had an average PEG ratio of 2.78 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 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.
To follow LW in the coming trading sessions, be sure to utilize Zacks.com.