Lamb Weston Stock: Is LW Underperforming the Consumer Defensive Sector?

Core Viewpoint - Lamb Weston Holdings, Inc. is a mid-cap food company with a market cap of $8.3 billion, specializing in frozen potato products and serving various sectors including restaurants and foodservice institutions [1][2]. Financial Performance - For Q1 2026, Lamb Weston reported an adjusted EPS of $0.74 and net sales of $1.66 billion, exceeding estimates [5]. - The company experienced a 6% volume growth, improved cost savings, and lower SG&A expenses, leading to a positive full-year outlook with projected net sales of $6.35 billion to $6.55 billion and adjusted EBITDA of $1 billion to $1.20 billion [5]. Stock Performance - Lamb Weston shares have decreased by 28.1% from their 52-week high of $83.98 and are down 9.6% year-to-date, underperforming the Consumer Staples Select Sector SPDR Fund (XLP), which has risen by 1.4% [3][4]. - Over the past 52 weeks, Lamb Weston shares have declined by 23.8%, while XLP has only dropped by 2.9% [4]. - Despite the stock's recent performance, it has risen by 7.7% over the past three months, outperforming XLP's marginal gain [3]. Analyst Sentiment - Analysts maintain a moderately optimistic outlook for Lamb Weston, with a consensus rating of "Moderate Buy" from 12 analysts and a mean price target of $65.27, indicating an 8.6% premium to current levels [6].