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Lamb Weston Holdings, Inc. (NYSE:LW) is included among the many 13 Finest Client Staples Dividend Shares to Spend money on Now.
On December 23, Barclays lower its value goal on Lamb Weston Holdings, Inc. (NYSE:LW) to $55 from $68 and stored an Obese score 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.
A number of 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.
Client habits is a part of the story. Ongoing inflation and commerce uncertainty have pushed folks to chop again on non-essential spending, together with consuming out. That has diminished 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 a lot of the firm’s income, gross sales had been flat at $1.07 billion. The corporate additionally faces tariff threat tied to imported inputs reminiscent of 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 beneath the $6.52 billion consensus estimate, based mostly 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 world producer, distributor, and marketer of value-added frozen potato merchandise.
Whereas we acknowledge the potential of LW as an funding, we imagine sure AI shares supply higher upside potential and carry much less draw back threat. Should you’re searching for a particularly undervalued AI inventory that additionally stands to learn considerably from Trump-era tariffs and the onshoring pattern, see our free report on the finest short-term AI inventory.
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