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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 $114.30 in the latest trading session, marking a -0.71% move from the prior day. This change lagged the S&P 500's 0.2% loss on the day. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 9.78%.
Heading into today, shares of the frozen foods supplier had gained 1.44% over the past month, lagging the Consumer Staples sector's gain of 5.56% and the S&P 500's gain of 4.16% 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 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 $1.65 billion, up 43.46% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Lamb Weston. These recent revisions tend to reflect the evolving nature of short-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. Over the past month, the Zacks Consensus EPS estimate has moved 0.4% higher. Lamb Weston is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Lamb Weston is holding a Forward P/E ratio of 23.21. For comparison, its industry has an average Forward P/E of 17.14, which means Lamb Weston is trading at a premium to the group.
Investors should also note that LW has a PEG ratio of 0.54 right now. 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. The Food - Miscellaneous industry currently had an average PEG ratio of 2.8 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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) Dips More Than Broader Markets: What You Should Know
Lamb Weston (LW - Free Report) closed at $114.30 in the latest trading session, marking a -0.71% move from the prior day. This change lagged the S&P 500's 0.2% loss on the day. At the same time, the Dow lost 0.38%, and the tech-heavy Nasdaq lost 9.78%.
Heading into today, shares of the frozen foods supplier had gained 1.44% over the past month, lagging the Consumer Staples sector's gain of 5.56% and the S&P 500's gain of 4.16% 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 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 $1.65 billion, up 43.46% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for Lamb Weston. These recent revisions tend to reflect the evolving nature of short-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. Over the past month, the Zacks Consensus EPS estimate has moved 0.4% higher. Lamb Weston is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Lamb Weston is holding a Forward P/E ratio of 23.21. For comparison, its industry has an average Forward P/E of 17.14, which means Lamb Weston is trading at a premium to the group.
Investors should also note that LW has a PEG ratio of 0.54 right now. 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. The Food - Miscellaneous industry currently had an average PEG ratio of 2.8 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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.