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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.
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 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
In the last year, 3 stock analysts published opinions about LW-N. 3 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.
Lamb Weston was recommended as a Top Pick by on . Read the latest stock experts ratings for Lamb Weston.
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.
3 stock analysts on Stockchase covered Lamb Weston In the last year. It is a trending stock that is worth watching.
On 2024-07-26, Lamb Weston (LW-N) stock closed at a price of $56.71.
Our PAST TOP PICK with LW has triggered its stop at $76. To remain disciplined, we recommend covering the position at this time. When combined with our previous recommendations, this will result in a net investment loss of 8%.