The exact reason why investors have been taking down Lamb Weston Holdings, Inc. (NYSE:LW) stock at a frenetic pace might seem like a bit of a head-scratcher at the moment, but that’s only if you are buying the stock for the wrong reasons. On 14 March, the shares dropped -1.65 points or -2.36 percent at $68.19 with a heavy trade volume of 1.986 million shares. After opening the session at $69.98, the shares went as high as $69.98 and as low as $68.13, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $10.1 billion and now has 147.54 million shares outstanding. Lamb Weston Holdings, Inc. (LW) stock has lost -1.2 percent of market value in 21 trading days.
LW stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.7 a share in the trailing twelve months. The stock’s value has fallen -7.3 percent year to date (YTD) against a rise of 20.75 percent in 12 month’s time. The company’s shares still trade -18.69 percent away from its 1-year high of $83.86 and 26.18 percent up from 52-week low of $54.04. The average consensus rating on the company is 2.2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
Lamb Weston Holdings, Inc. (LW) will probably climb 19.08 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $85-month high price target. This represents a whopping 24.65 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $81, which represents a return potential of 18.79 percent when compared to the closing price of the stock of $68.19 on Thursday, March 14. The lowest price target for the stock is $74 — slightly more than 8.52 percent from LW’s current share price.
History has shown that shares in Lamb Weston Holdings, Inc. have gone up on 7 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings.
The stock is currently hovering around the first support level of $67.55. Below this, the next support is placed in the zone of $66.92. Till the time, the LW stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 40.12 on daily chart, which may remain a cause for concern. If the price breaks below $66.92 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $69.4 mark may result into a pull-back move towards $70.62 level.
Shares of Lamb Weston Holdings, Inc. (LW) are trading at a P/E ratio of 21.95 times earnings reported for the past 12 months. The industry LW operates in has an average P/E of 12.07. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span.Further, it is sporting a 2.79 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.69. 26.4 percent is the gross profit margin for Lamb Weston Holdings, Inc. and operating margin sits at 17.4 percent. Along with this, the net profit margin is 13.1 percent.