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Lamb Weston (LW-N)
NYSE:LW
83.50
1.02
(1.21%) 1d
Financials
Technical Analysis
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TSX pauses, Wall Street climbsThis summary was created by AI, based on 3 opinions in the last 12 months.
Lamb Weston (LW-N) is a leading producer and distributor of frozen potato products with a strong global presence. Despite a recent earnings setback due to transition issues, analysts see this as a temporary dip and a good buying opportunity. With a solid ROE, modest dividend, and potential for upside growth, the company is viewed favorably by experts. While the leveraged balance sheet adds some risk, the stable nature of the business and consistent dividend payments make it a solid consumer staple name.
$81.805
Unknown
They delivered a great quarter and shares trade cheaply.
LW produces and distributes frozen potato products globally and is now trading at 18.4x times' Forward P/E. In the last few years, LW’s revenue grew at a healthy double-digit rate. The balance sheet is leveraged, with a net debt of $3.3B, net debt/EBITDA is around 2.9x. The company has been reinvesting quite heavily to grow organically over the last few years. The debt adds risk, but considering the business it is probably at a manageable level. We would not like to see it increase, though. LW also pays consistently increasing dividends, which we like. Overall, a solid consumer staple name, debt is high, but the business is quite stable to support the leverage, ROE (113%!) is a bit inaccurate metric to use here, we prefer to use Return on total capital (26.7%) (debt + equity), we think that metrics reflect the return of the underlying business more accurately.
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Lamb Weston(LW-N) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 2
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 0
Total Signals / Votes : 2
Lamb Weston(LW-N) Frequently Asked Questions
What is Lamb Weston stock symbol?
Lamb Weston is a American stock, trading under the symbol LW-N on the New York Stock Exchange (LW). It is usually referred to as NYSE:LW or LW-N
Is Lamb Weston a buy or a sell?
In the last year, 2 stock analysts published opinions about LW-N. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Lamb Weston.
Is Lamb Weston a good investment or a top pick?
Lamb Weston was recommended as a Top Pick by on . Read the latest stock experts ratings for Lamb Weston.
Why is Lamb Weston stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Lamb Weston worth watching?
In the last year, there was no coverage of Lamb Weston published on Stockchase.
What is Lamb Weston stock price?
On 2024-04-25, Lamb Weston (LW-N) stock closed at a price of $83.5.
LW provides french fries and other potato products to over 100 countries and McDonald's is their largest customer. Recently reported earnings negatively surprised analysts as a transition to a new internal planning system did not go smoothly -- resulting in $135 million decline in sales. This is very likely temporary and provides a good buying opportunity. It trades at 16x earnings and supports a robust ROE. Its modest dividend is backed by a payout ratio under 20% of cash flow. We recommend setting a stop-loss at $69, looking to achieve $129 -- upside potential of 57%. Yield 1.1%
(Analysts’ price target is $129.34)