Lamb Weston (LW) closed at $105.92 in the latest trading session, marking a -1.24% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.59%. Elsewhere, the Dow gained 0.68%, while the tech-heavy Nasdaq added 0.66%.
The the stock of frozen foods supplier has risen by 10.19% in the past month, leading the Consumer Staples sector's gain of 1.96% and the S&P 500's gain of 5.16%.
Analysts and investors alike will be keeping a close eye on the performance of Lamb Weston in its upcoming earnings disclosure. The company's earnings report is set to go public on January 4, 2024. The company is forecasted to report an EPS of $1.40, showcasing a 9.38% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.69 billion, reflecting a 32.61% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.84 per share and revenue of $6.86 billion, which would represent changes of +24.79% and +28.29%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Lamb Weston. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Lamb Weston is currently a Zacks Rank #3 (Hold).
In terms of valuation, Lamb Weston is presently being traded at a Forward P/E ratio of 18.35. This represents a premium compared to its industry's average Forward P/E of 17.16.
Investors should also note that LW has a PEG ratio of 1.38 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. As the market closed yesterday, the Food - Miscellaneous industry was having an average PEG ratio of 2.49.
The Food - Miscellaneous industry is part of the Consumer Staples sector. Currently, this industry holds a Zacks Industry Rank of 92, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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