Lamb Weston (LW) closed the most recent trading day at $111.81, moving -1.48% from the previous trading session. This change lagged the S&P 500's 0.38% loss on the day. Meanwhile, the Dow gained 0.27%, and the Nasdaq, a tech-heavy index, lost 4.19%.
Prior to today's trading, shares of the frozen foods supplier had gained 1.17% over the past month. This has outpaced the Consumer Staples sector's loss of 5.29% and lagged the S&P 500's gain of 3.78% in that time.
Investors will be hoping for strength from Lamb Weston as it approaches its next earnings release. The company is expected to report EPS of $1.05, up 61.54% 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.
Investors should also note any recent changes to analyst estimates for Lamb Weston. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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 remained stagnant. Lamb Weston is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Lamb Weston has a Forward P/E ratio of 22.97 right now. Its industry sports an average Forward P/E of 18.19, so we one might conclude that Lamb Weston is trading at a premium comparatively.
We can also see that LW currently has a PEG ratio of 0.54. 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. LW's industry had an average PEG ratio of 2.5 as of yesterday's close.
The Food - Miscellaneous industry is part of the Consumer Staples sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% 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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