Lamb Weston (LW) Soars 5.9%: Is Further Upside Left in the Stock?
Lamb Weston (LW) shares ended the last trading session 5.9% higher at $43.6. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 18.4% loss over the past four weeks.
Lamb Weston’s gain appears to reflect improving confidence in its operational progress, supported by North American customer wins, share gains and stronger cost discipline. The stock may also have benefited from better-than-expected cost savings and a fiscal 2027 outlook that calls for earnings growth to outpace sales growth.
This frozen foods supplier is expected to post quarterly earnings of $0.59 per share in its upcoming report, which represents a year-over-year change of -20.3%. Revenues are expected to be $1.65 billion, down 0.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Lamb Weston, the consensus EPS estimate for the quarter has been revised marginally higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on LW going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Lamb Weston is part of the Zacks Food - Miscellaneous industry. Sysco (SYY), another stock in the same industry, closed the last trading session 0.4% lower at $77.49. SYY has returned -4.1% in the past month.
Sysco's consensus EPS estimate for the upcoming report has changed -1.6% over the past month to $1.16. Compared to the company's year-ago EPS, this represents a change of +0.9%. Sysco currently boasts a Zacks Rank of #3 (Hold).
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This article originally published on Zacks Investment Research (zacks.com).
