MarketBeatยท2025-04-04 12:15Group 1: Investment Opportunities - Lamb Weston (NYSE: LW) and Conagra Brands (NYSE: CAG) are trading at value levels with historically high yields for investors in 2025 [1] - Both companies are at the low ends of their historical ranges and below broad market averages, presenting potential investment opportunities [1][10] - Lamb Weston is expected to outperform Conagra in early 2025, showing growth while Conagra faces challenges [2][3] Group 2: Financial Performance and Forecasts - Lamb Weston has a 12-month stock price forecast of $73.55, indicating a 23.61% upside from the current price of $59.50 [2] - Conagra's 12-month stock price forecast is $28.20, with a 5.57% upside from the current price of $26.71 [7] - Both companies are expected to revert to revenue growth in 2026 and maintain healthy compound annual growth rates (CAGRs) through 2030 [4] Group 3: Dividend and Buyback Strategies - Conagra offers a higher dividend yield of 5.3%, while Lamb Weston has a lower yield but a more aggressive buyback strategy [8] - Lamb Weston reduced its share count by 2% in the first nine months of the year, with expectations for continued buybacks [8] - Conagra pays out about 55% of its earnings in dividends, while Lamb Weston pays out 45% [8] Group 4: Market Sentiment and Institutional Activity - Analysts have noted deep value in consumer staples stocks, with institutional buying activity increasing in Q4 and Q1 2025 [10][11] - Both stocks are trading near long-term lows, suggesting they may have hit bottom and are poised for a rebound [12] - The market has overcorrected for both stocks, indicating potential for significant gains in 2025 [10][12]