Lifeway Foods (LWAY) Suffers a Larger Drop Than the General Market: Key Insights

The latest trading session saw Lifeway Foods (LWAY) ending at $20.21, denoting a -0.79% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a loss of 0.04% for the day. Meanwhile, the Dow lost 0.03%, and the Nasdaq, a tech-heavy index, added 0.03%.

The the stock of dairy and cheese company has risen by 76.21% in the past month, leading the Consumer Staples sector's loss of 3.79% and the S&P 500's gain of 2.57%.

The upcoming earnings release of Lifeway Foods will be of great interest to investors. The company's upcoming EPS is projected at $0.24, signifying a 300% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $43 million, up 13.46% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $1 per share and a revenue of $180 million, demonstrating changes of +33.33% and +12.41%, respectively, from the preceding year.

Investors should also note any recent changes to analyst estimates for Lifeway Foods. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 13.64% higher. As of now, Lifeway Foods holds a Zacks Rank of #1 (Strong Buy).

Looking at valuation, Lifeway Foods is presently trading at a Forward P/E ratio of 20.37. For comparison, its industry has an average Forward P/E of 15.48, which means Lifeway Foods is trading at a premium to the group.

The Food - Dairy Products industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 91, this industry ranks in the top 37% of all industries, numbering over 250.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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