Lamb Weston (NYSE: LW ) is a consumer-staples company specializing in the production of frozen-potato products. Across 27 factories and in more than 100 countries, LW holds #1 market share in North America, and #2 in the rest of the BuildingBenjamins is a free stock picking and market commentary investment newsletter. Building Benjamins is the DBA (doing businesses as) publishing entity for Tradition Investment Management, LLC, a registered investment adviser. Benjamin Halliburton, our founder, also founded ...

Lamb Weston Holdings, Inc. (LW) is encountering fundamental challenges that are affecting its performance. Key issues include difficulties in commercial execution and supply chain operations along with a global decline in demand for frozen fries. The company is facing weaker restaurant traffic trends, which are exerting pressure on profitability. These factors contribute to a tough operating environment, hindering Lamb Weston's ability to achieve its financial goals and growth targets. Looking ahead to the ...

Company Overview - Lamb Weston Holdings Inc. is a leading American food company specializing in frozen potato products, with a market cap of $9 billion [1] - The company operates in two segments: North America (67% of FY 2024 revenue) and International (33%) [1] - McDonald's Corp. is the largest customer, accounting for 14% of total net sales [1] Dividend Growth - The company has increased its dividend for eight consecutive years since becoming independent in 2017 [2] - The five-year dividend growth rate is 7.9%, with a recent increase of 28.6% [3] - The current stock yield is 2.3%, which is 110 basis points higher than its five-year average, and the payout ratio is 28.9% [3] Revenue and Earnings Growth - Revenue grew from $3.2 billion in FY 2017 to $6.5 billion in FY 2024, representing a compound annual growth rate (CAGR) of 10.7% [4] - Earnings per share (EPS) increased from $2.22 to $4.98 during the same period, with a CAGR of 12.2% [5] - Recent challenges include a botched ERP transition and excess supply in the market, leading to a significant drop in stock price [5] Financial Position - The long-term debt/equity ratio is 1.9, and the interest coverage ratio is nearly 8, indicating a decent financial position [6] - Return on equity (ROE) averaged 269% over the last five years, with a net margin of 10.8% [6] - The company benefits from economies of scale and strong customer relationships, providing durable competitive advantages [6] Valuation - The stock is currently trading at a P/E ratio of 12.4, significantly lower than its five-year average of 23.4 [7] - A dividend discount model analysis estimates a fair value of $61.92, indicating the stock may be undervalued [11] - Professional analysis firms rate the stock as a 4-star "buy," with target prices of $70.00 and $95.00 from CFRA and Morningstar, respectively [13][14] Investment Opportunity - The recent stock price drop of nearly 50% presents a potential buying opportunity for long-term investors [5][15] - The company has a low payout ratio and a history of dividend increases, making it an attractive option for dividend growth investors [15]

Lamb Weston (LW) , a current Zacks Rank #5 (Strong Sell). is a leading global manufacturer, marketer, and distributor of value-added frozen potato products. Analysts have taken a bearish stance on the company's earnings outlook, landing it into a Zacks Rank #5 (Strong Sell). | --- | --- | --- | --- | --- | |----------------------------------------------|-------|-------|-------|---------| | | | | | | | Magnitude Consensus Estimate Trend (60 Days) | | | | | | | Q1 | Q2 | F1 | F2 | | | 0.73 | 1.20 | 4.54 | 5.1 ...

Jon Lovette/DigitalVision via Getty Images Introduction On April 6, I wrote an article titled "Over 20% Crash, 60% Upside? A Deep Dive Into Lamb Weston's Dividend Potential." Shortly after I wrote this article, we bought Lamb Weston stock for a number of family accounts (I do not benefit from these financially). This was a good move - until it wasn't. Not only did the stock price collapse after its 3Q24 earnings, allowing us to buy, but it also nosedived after 4Q24 earnings, KSJ WSJ Lamb Weston Stock Drops ...

A month has gone by since the last earnings report for Lamb Weston (LW) . Shares have added about 17.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Lamb Weston due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Lamb Weston Q4 Earnings & Sales Lag Estimates, Down ...

NEW YORK, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Lamb Weston Holdings, Inc. (NYSE: LW) on behalf of long-term stockholders following a class action complaint that was filed against Lamb Weston on June 13, 2024 with a Class Period from July 25, 2023 to April 3, 2024. Our investigation concerns whether the board of directors of Lamb Weston have breached their fiduciary duties to the company. ...

Lamb Weston Holdings, Inc. (LW) struggles with persistent execution difficulties both commercially and within the supply chain. Global softening in demand for frozen fries and substantial market share losses are hurting volumes. LW is grappling with high costs that are impacting its performance. Unimpressively, Lamb Weston came out with soft results for fourth-quarter fiscal 2024, following which it issued a lackluster outlook for first-quarter fiscal 2025. The Zacks Rank #5 (Strong Sell) company's shares h ...

Case Overview - A class action lawsuit has been filed against Lamb Weston Holdings Inc (NYSE: LW) for alleged material misrepresentations and omissions regarding the design and implementation of its new Enterprise Resource Planning (ERP) system [5] - The Class Period for the lawsuit is between July 25 2023 and April 3 2024 [1] - Investors who purchased Lamb Weston common stock during the Class Period may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement [2] Allegations - Defendants made numerous material misrepresentations and omissions regarding the design and implementation of Lamb Weston's new ERP system [5] - Lamb Weston represented that the new ERP system had strengthened its operational infrastructure and downplayed any implementation issues as usual bumps [5] - The company told investors that its financial guidance for fiscal 2024 appropriately accounted for any negative financial impact associated with the system's deployment [5] - As a result of these misrepresentations Lamb Weston stock traded at artificially inflated prices during the Class Period [5] Legal Action - The Rosen Law Firm is reminding purchasers of Lamb Weston common stock during the Class Period of the important August 12 2024 lead plaintiff deadline [1] - To join the Lamb Weston class action investors can visit https://rosenlegal com/submit-form/?case_id=26209 or call Phillip Kim Esq toll-free at 866-767-3653 [3][6] - A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation and must move the Court no later than August 12 2024 [3] Rosen Law Firm Background - The Rosen Law Firm represents investors throughout the globe concentrating its practice in securities class actions and shareholder derivative litigation [4] - The firm has achieved the largest ever securities class action settlement against a Chinese Company and was ranked No 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017 [4] - In 2019 alone the firm secured over $438 million for investors and has been ranked in the top 4 each year since 2013 [4] - Founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar in 2020 [4]

Core Viewpoint - The Lamb Weston Holdings, Inc. is facing a class action lawsuit due to alleged violations of the Securities Exchange Act of 1934, primarily related to the problematic implementation of a new Enterprise Resource Planning (ERP) system, which has resulted in significant financial losses for the company [1][4][5]. Company Overview - Lamb Weston is a food processing company and a major producer of frozen potato products [3]. Class Action Details - The class action lawsuit is titled Cleveland Bakers and Teamsters Pension Fund v. Lamb Weston Holdings, Inc., and it covers purchasers of Lamb Weston shares from July 25, 2023, to April 3, 2024 [1]. - Investors have until August 12, 2024, to seek appointment as lead plaintiff in the lawsuit [2][6]. Allegations Against the Company - The lawsuit alleges that Lamb Weston and its executives made false or misleading statements regarding the readiness and implementation of the ERP system [4]. - It is claimed that the company was aware of issues with the ERP system that would hinder its successful implementation but proceeded with the rollout anyway [4]. - On April 4, 2024, Lamb Weston disclosed significant problems with the ERP system, leading to a loss of over $130 million in sales during Q3 of fiscal 2024 and a reduction in sales guidance by $330 million [5]. Financial Impact - Following the disclosure of the ERP issues, Lamb Weston’s stock price fell by more than 19% [5].