Why Lamb Weston (LW) is a Top Value Stock for the Long-Term
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.
Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum.
Why Investors Should Pay Attention to This Value Stock
Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.
Lamb Weston (LW)
Based in Eagle, ID, Lamb Weston Holdings, Inc. is a leading global manufacturer, marketer and distributor of value-added frozen potato products, particularly French fries, and also provides a range of appetizers.
LW is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of B. Shares are currently trading at a forward P/E of 17X for the current fiscal year compared to the Food - Miscellaneous industry's P/E of 17X. Additionally, LW has a PEG Ratio of 1.1 and a Price/Cash Flow ratio of 16.4X. Value investors should also note LW's Price/Sales ratio of 2.3X.
A company's earnings performance is important for value investors as well. For fiscal 2024, one analyst revised their earnings estimate higher in the last 60 days for LW, while the Zacks Consensus Estimate has increased $0.03 to $5.94 per share. LW also holds an average earnings surprise of 28.8%.
Investors should take the time to consider LW for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.
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Lamb Weston (LW) : Free Stock Analysis Report
