Lamb Weston’s NYSE: LW FQ 1 record and assistance upgrade verify that the king of spuds is no loser. This firm reaffirmed its assistance, which subsequently declares the capital and funding return outlook , and the resources return is solid. This FMCG (fast-moving consumer goods company pays a significant reward and buys back shares strongly, giving take advantage of for lasting capitalists and prospective for a double-digit total return over time.
Lamb Weston Today
- 52 -Week Range
- $ 47 87
▼
$ 83 98
- Reward Yield
- 2 39 %
- P/E Ratio
- 24 67
- Price Target
- $ 65 56
Lamb Weston’s returns is eye-catching enough for financial investment in its very own right. The supply returns 2 5 % in very early October and is come with by a positive expectation for distribution boosts. The payment proportion is reasonably high contrasted to the earnings expectation, at regarding 60 %, but not an overwhelming degree, and is in placement with its sector. The even more vital ratio is the cash flow payout proportion, which was only 17 % in Q 1, low sufficient for financiers to assume the double-digit circulation CAGR will be sustained.
The buybacks are considerable. The company lowered its share count by 2 % in F 2025 and is on track to reduce it by a comparable or bigger quantity in F 2026 The pace topped 3 5 % in FQ 1, and there is sufficient funding left under the current permission to continue at a similar rate in upcoming quarters.
There are no red flags on the balance sheet. The annual report highlights at the end of Q 1 include lowered properties countered by a reduction in responsibilities, reduced leverage, and improved equity. Equity increased despite the reduction in share count and additional dispersed resources.
Lamb Weston Maintains Development in Difficult Atmosphere
Lamb Weston’s FQ 1 was strong, with earnings expanding approximately 0. 5 % to exceed MarketBeat’s agreement price quote. The $ 1 66 billion in income was driven by a 6 % volume boost and 1 % effect from FX translation, balanced out by a 7 % decrease in price.
Lamb Weston MarketRank ™ Stock Evaluation
- General MarketRank ™
- 93 rd Percentile
- Analyst Ranking
- Hold
- Upside/Downside
- 5 9 % Upside
- Short Passion Degree
- Healthy and balanced
- Dividend Strength
- Solid
- Ecological Rating
- – 2 16
- Information Belief
- 0. 60
- Insider Trading
- N/A
- Proj. Incomes Development
- 17 42 %
The rate decline is substantial however not unforeseen. It is connected to the closing of its Washington plant and the discontinuation of products made there. The unfavorable influence is not anticipated to linger and is expected to cause boosted margins gradually. Segmentally, International markets were greatest, expanding by 4 % drunk of FX translation, while the North American market contracted by 2 %.
The margin news is blended however or else positive to shareholders. The business experienced margin pressure in essentially all comparisons, however the decreases were much less than expected, connected to one-offs and price-mix changes connected to terminated product. The key point is that GAAP of 74 cents went beyond MarketBeat’s reported agreement by 21 cents, or about 4000 basis points, which boosts the expectation for capital and resources returns
The advice is likewise desirable. The firm reaffirmed its profits outlook, with its middle near the consensus target. The projection thinks minor development and enough incomes to keep financial wellness while investing and returning funding to investors
Analysts Cap Gains for LW: Organizations Are Buying the Worth
Analysts’ belief is lukewarm for LW supply and capping gains in 2025 The fads disclose diminished protection, the rating falling to Hold, and the cost target declining. Although the consensus thinks a 12 % benefit in early October, the fad is leading to the low-end array. Nonetheless, the low-end variety is likely to function as a flooring for the action, as it coincides with a vital support target and institutional acquiring.
The institutions possess regarding 90 % of this stock and supply a solid assistance base They have actually been getting on balance all year and will likely continue to do so as a result of the reduced worth. LW stock sell the low teens relative to its 2030 EPS projection, suggesting its stock cost might boost by 50 % already.
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