Bear of the Day: Lamb Weston (LW)

Lamb Weston LW, a current Zacks Rank #5 (Strong Sell). is a leading global manufacturer, marketer, and distributor of value-added frozen potato products.Analysts have taken a bearish stance on the company’s earnings outlook, landing it into a Zacks Rank #5 (Strong Sell). Below is a chart illustrating the EPS revisions trend for its current fiscal year. Image Source: Zacks Investment ResearchLet’s take a closer look at how the company stacks up.LW Shares StruggleThe company’s latest set of quarterly results caused shares to plunge despite exceeding our consensus expectations, with shares down 31% over the last three months.Image Source: Zacks Investment ResearchSales of $1.6 billion were up just 1% YoY, whereas adjusted EPS of $0.69 fell 5% year-over-year. As shown below, the top line has shown little growth over the past years, helping explain the consistently poor price action.Image Source: Zacks Investment ResearchStill, it’s important to note that the company did gain some market share in its priority markets, with the company also announcing a 3% increase in its quarterly payout. Shares now yield 3.4% annually after the years of poor price action, the highest yield we’ve seen in 15 years.Bottom LineAnalysts' negative earnings estimate revisions paired with weak sales growth paints a challenging picture for the company’s shares in the near term.Lamb Weston LW is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy). These stocks sport a notably stronger earnings outlook and the potential to deliver explosive gains in the near term.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lamb Weston (LW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks