Lamb Weston (LW) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.
Activist investor Jana Partners urged Lamb Weston on Monday to replace board members and top executives to improve its performance or else put itself up for sale.
LW's fiscal second-quarter results are likely to reflect the benefits from a favorable pricing environment amid volume woes.
NEW YORK CITY, NY / ACCESSWIRE / December 15, 2024 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Lamb Weston Holdings, Inc. ("Lamb Weston" or "the Company") (NYSE:LW). Investors who purchased Lamb Weston securities prior to July 25, 2023, and continue to hold to the present, are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/LW.
NEW YORK CITY, NY / ACCESSWIRE / December 12, 2024 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Lamb Weston Holdings, Inc. ("Lamb Weston" or "the Company") (NYSE:LW). Investors who purchased Lamb Weston securities prior to July 25, 2023, and continue to hold to the present, are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/LW.
LW is facing challenges, including reduced demand, declining restaurant traffic and rising manufacturing costs, which have led to disappointing performance.
Jana Partners and Continental Grain plan to speak with the potato processing giant about its financial performance and the start of a strategic review.
Lamb Weston (LW) reported earnings 30 days ago. What's next for the stock?
Lamb Weston Holdings, Inc. has strong growth prospects due to recovering customer traffic, easier year-over-year comparisons, and efforts to restore supply/demand balance, justifying a buy rating. The company's margins should benefit from volume leverage and cost-saving initiatives, with significant improvements expected in the latter half of fiscal 2025 and beyond. The stock is trading below historical averages, and as the company delivers revenue and margin improvements, it should attract positive investor traction and P/E multiple re-rating.
Lamb Weston has rebounded 28% since August, driven by better earnings and activist investor interest, despite ongoing challenges and weak consumer sentiment. Strategic initiatives, including market share gains and cost-saving measures, position LW for long-term growth and potential double-digit EPS growth by 2026. JANA Partners' 5% stake and push for strategic changes could accelerate LW's turnaround, making it an attractive investment with undervalued stock.
Things are heating up in the French fry business.
Jana Partners took a stake in the struggling potato company.