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Lamb Weston Holdings Inc . (NYSE:LW) has reached a new 52-week low, with its share price dipping to $59.116. This marks a significant downturn for the company, which has seen its stock price steadily decline over the past year. The 52-week low data underscores the challenges faced by the company in a volatile market. Over the past year, Lamb Weston Holdings has experienced a substantial decrease in its stock value, with a 1-year change data showing a -25.12% drop. This downward trend reflects the broader economic pressures and uncertainties that have impacted the company's performance.
In other recent news, Lamb Weston has been the subject of multiple analyst predictions. The company is expected to release its fiscal fourth-quarter 2024 results soon, with Citi maintaining a Buy rating on the shares and a price target of $104. Citi's outlook for fiscal year 2025 is conservative, predicting lower sales and EPS estimates than the consensus. TD Cowen, another analyst firm, has also kept its Buy rating on Lamb Weston shares, with a price target of $105, despite potential fourth-quarter sales shortfall due to decreased foot traffic at key customer locations.
The company's earnings and revenue have been affected by a downward revision of around 5% in EBITDA estimates for FY25, primarily due to slowing restaurant traffic and customer losses from the implementation of an Enterprise Resource Planning (ERP) system. However, analysts project EPS forecasts of 5.48 for FY1 and 6.54 for FY2, indicating expectations of solid earnings growth. Lamb Weston has also faced operational setbacks due to the ERP transition but expects improved operational efficiency upon successful completion. Barclays Capital Inc. analysts have consistently given the company an "Overweight" rating, suggesting confidence in Lamb Weston's potential to outperform the broader market. These are all recent developments that investors should consider.
InvestingPro Insights
In light of Lamb Weston Holdings Inc.'s (LW) recent dip to a new 52-week low, a closer look at the company's financials and analyst expectations via InvestingPro may offer investors a clearer picture of its potential. With a market capitalization of $11.35 billion and a P/E ratio that stands at 10.45, the company presents an interesting valuation case. Despite the stock's decline, analysts are anticipating sales growth in the current year, which could signal a turnaround or an opportunity for investors looking at the company's fundamentals.
InvestingPro Tips suggest that Lamb Weston Holdings has a history of raising its dividend, with increases for 7 consecutive years, which may appeal to income-focused investors. Additionally, the company's liquid assets surpass its short-term obligations, indicating a solid liquidity position. These factors, combined with the expectation of profitability this year, could provide some optimism despite the recent price hit.
For those interested in a deeper analysis, InvestingPro offers additional tips that could further inform investment decisions. By using the coupon code PRONEWS24, readers can get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, providing access to a comprehensive set of tools and insights. There are 11 additional InvestingPro Tips available for Lamb Weston Holdings, which could be invaluable for investors considering this stock.
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