LW Stock Analysis — Lamb Weston Holdings
Sector: Consumer staples
AI Verdict
Lamb Weston trades at 14.7x next year's earnings with 33.5% expected EPS growth—cheap for the growth you're getting if their supply chain moat keeps competitors at bay.
Competitive Moat
Lamb Weston dominates the frozen potato products market with long-term supply contracts and deep integration with major fast food chains, making it hard for competitors to displace them. Their scale and distribution network create cost advantages and ensure shelf space globally.
Summary
Lamb Weston is flashing an RSI of 30.6, signaling oversold territory after a -17.35% one-year return.
Where It Stands
Shares have dropped -17.35% in the past year, trade at 14.7x forward earnings (below the consumer staples median of 20x), and the RSI of 30.6 suggests the stock is oversold.
Key Metrics
- RSI: 30.6 — Near Oversold
- Trailing P/E: 19.6x
- Forward P/E: 14.7x
- PEG Ratio: 0.59
- Earnings Growth: +0.3%
- Revenue Growth: +0.0%
- Market Cap: $5.8B
- Dividend Yield: 0.04%
- 1-Year Return: -17.35%
- 52-Week High: $67.07
- 52-Week Low: $37.62
Analyst Consensus
10 Buy · 10 Hold · 0 Sell (20 analysts)
Bull Case
With analysts expecting 33.5% EPS growth and a forward P/E of just 14.7x, you're getting rapid earnings growth at a discount to the sector.
Bear Case
If the P/E slips further to 12x (the energy sector average), the stock could see another 18% downside even if earnings meet expectations.
Catalyst to Watch
Watch for quarterly earnings updates—if EPS growth hits the 33.5% target, the valuation gap to staples peers could close quickly.