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Lamb Weston Holdings, Inc. (NYSE:LW) is included among the many 13 Finest Shopper Staples Dividend Shares to Put money into Now.
On December 23, Barclays minimize its value goal on Lamb Weston Holdings, Inc. (NYSE:LW) to $55 from $68 and stored an Chubby ranking on the shares. The agency acknowledged investor frustration after the corporate posted a first-half fiscal 2026 EBITDA beat with out elevating steerage. Even so, Barclays stated the broader french fry trade backdrop stays “vibrant,” and the 26% selloff within the inventory that adopted was overdone.
Just a few days earlier, on December 18, Lamb Weston Holdings, Inc. (NYSE:LW) stated it was holding its full-year gross sales outlook regular for the second time this 12 months. That got here regardless of the corporate simply beating quarterly expectations. Analysts at Jefferies famous that reaffirming steerage after such a beat factors to a softer second half than the market had anticipated.
Shopper conduct is a part of the story. Ongoing inflation and commerce uncertainty have pushed individuals to chop again on non-essential spending, together with consuming out. That has lowered site visitors at eating places, a key demand driver for frozen potato merchandise. Worldwide gross sales rose 4% 12 months over 12 months within the second quarter. In North America, which generates many of the firm’s income, gross sales have been flat at $1.07 billion. The corporate additionally faces tariff danger tied to imported inputs similar to palm oil, whilst costs for different uncooked supplies, together with potatoes, have eased.
Lamb Weston stored its annual income forecast at $6.35 billion to $6.55 billion. The midpoint of that vary sits under the $6.52 billion consensus estimate, primarily based on LSEG information. For the quarter ended November 23, the corporate reported income of $1.62 billion, topping expectations of $1.59 billion. Adjusted earnings got here in at 69 cents per share, forward of the 65-cent estimate.
Lamb Weston Holdings, Inc. (NYSE:LW) operates as a worldwide producer, distributor, and marketer of value-added frozen potato merchandise.
Whereas we acknowledge the potential of LW as an funding, we consider sure AI shares provide larger upside potential and carry much less draw back danger. Should you’re searching for an especially undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring development, see our free report on the finest short-term AI inventory.
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