Lamb Weston LW, a present Zacks Rank #5 (Robust Promote). is a number one world producer, marketer, and distributor of value-added frozen potato merchandise.
Analysts have taken a bearish stance on the corporate’s earnings outlook, touchdown it right into a Zacks Rank #5 (Robust Promote).
Picture Supply: Zacks Funding Analysis
As well as, the corporate is within the Zacks Meals – Miscellaneous trade, which is at present ranked within the backside 21% of all Zacks industries.
Let’s take a better have a look at the corporate.
Lamb Weston Posts Weak Outcomes
The corporate’s newest set of quarterly outcomes brought about shares to plunge, with LW falling in need of the Zacks Consensus EPS estimate by 37% and reporting gross sales 5% beneath expectations. The outcomes mirrored its second consecutive interval of falling in need of each earnings and income expectations.
Shares at the moment are buying and selling at their lowest stage since early 2022.
Picture Supply: Zacks Funding Analysis
The corporate delivered a spooky message following the print, with CEO Tom Werner stating, ‘We count on fiscal 2025 to be one other difficult yr. The working atmosphere has modified quickly over the previous twelve months as world restaurant visitors and frozen potato demand softened because of menu worth inflation persevering with to negatively have an effect on world restaurant visitors. This has resulted in a rise in accessible capability in North America and Europe.’
To place it merely, customers have had their wallets pinched, and the outcomes absolutely mirror the demand pullback that’s adopted.
Backside Line
Detrimental earnings estimate revisions, ensuing from tender quarterly outcomes, paint a difficult image for the corporate’s shares within the close to time period.
Lamb Weston LW is a Zacks Rank #5 (Robust Promote), indicating that analysts have taken a bearish stance on the corporate’s earnings outlook.
For these looking for sturdy shares, a terrific concept could be to give attention to shares carrying a Zacks Rank #1 (Robust Purchase) or a Zacks Rank #2 (Purchase) – these shares sport a notably stronger earnings outlook paired with the potential to ship explosive positive aspects within the close to time period.
Analysis Chief Names “Single Finest Decide to Double”
From 1000’s of shares, 5 Zacks consultants every have chosen their favourite to skyrocket +100% or extra in months to return. From these 5, Director of Analysis Sheraz Mian hand-picks one to have probably the most explosive upside of all.
This firm targets millennial and Gen Z audiences, producing almost $1 billion in income final quarter alone. A current pullback makes now a great time to leap aboard. In fact, all our elite picks aren’t winners however this one might far surpass earlier Zacks’ Shares Set to Double like Nano-X Imaging which shot up +129.6% in little greater than 9 months.
Free: See Our Prime Inventory And 4 Runners Up
Lamb Weston (LW) : Free Inventory Evaluation Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
