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Is It Too Late to Buy LW?

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Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
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Lamb Weston Holdings Inc. stocks have been trading up by 7.09 percent after positive news buoyed investor confidence.

Recent News Highlights

  • The quarterly dividend of $0.37 per share declared by the company, payable on May 30, 2025, reflects robust financial health and might attract dividend-focused investors.
  • Lamb Weston Holdings is due to release its fiscal 2025 third-quarter results on April 3, highlighting its ongoing transparency and commitment to shareholders.
  • Wells Fargo has adjusted Lamb Weston’s price target to $66, maintaining an Overweight rating. This indicates a firm belief in the company’s potential despite some recent fluctuations.
  • Market anticipated earnings per share for Lamb Weston’s upcoming report stands at 87 cents, hinting at a steady recovery amidst the broader economic landscape.

Candlestick Chart

Live Update At 10:38:11 EST: On Thursday, April 03, 2025 Lamb Weston Holdings Inc. stock [NYSE: LW] is trending up by 7.09%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Financial Snapshot and Recent Performance

As millionaire penny stock trader and teacher Tim Sykes says, “It’s not about how much money you make; it’s about how much money you keep.” For traders navigating the volatile world of penny stocks, this mindset is crucial. While the initial allure may be the potential for quick profits, the true challenge lies in preserving those earnings. Skillful trading demands not just the ability to capitalize on opportunities but also the discipline to secure gains, emphasizing that the real mark of trading success is what remains in your account after a series of transactions.

Lamb Weston Holdings Inc., known primarily for its leadership in frozen potato products, is steering through a mix of optimistic prospects and cautious market sentiments. The company’s recent decision to maintain a quarterly dividend of $0.37 per share showcases not just confidence but also a gesture of stability that might appeal to more conservative investors. It’s like when a friend, despite a tough week, invites you over for a home-cooked meal. The gesture signifies assurance and hope.

The looming third-quarter earnings report, set to release on April 3, adds another layer of intrigue. Analysts expect the company to announce an EPS of 87 cents. This moment holds potential as an indicator for the company’s current trajectory. One could liken this anticipation to waiting for the test results of a diligent student after a semester of hard work.

Delving into the stock’s recent performance, we’ve seen fluctuations with the recent close at $57.96, following a brief upward swing from $54.15. The broader context reveals a potential for upward movement. The intraday fluctuations — a high of $60.92 to a low of $57.50 — resemble an athlete’s fast-paced heart as they approach the final lap.

More Breaking News

Financially, Lamb Weston’s key ratios such as an EBIT margin of 8.8% and a gross margin nearing 22.5% point towards a healthy profit-generating capability. However, a PE ratio of 21.4 and a price-to-book value of 4.73 suggest that investors are slightly cautious, possibly valuing the company’s potential more than its present statistics. It’s somewhat akin to investing in a promising startup — the road looks bright, but the present needs careful treading.

Key Insights from Financial Reports

Lamb Weston’s cash flow analysis reveals some critical insights. The company reported a net issuance of debt at $614.9M, indicating strategic leverage to grow the business further. This move might seem bold, yet when you consider their operating cash flow is steady at $99.1M, it portrays a well-thought-out expansion plan. It’s like charging forward in chess, knowing you have a solid defense lined up.

A quick look at the revenue over the past periods notes a 17.55% increase over three years, which manifests its ability to capture market opportunities and consumer preferences adeptly. Inventory levels, at $1.33B, also hint at a strategy of preparation, ensuring they can meet any sudden surge in demand — a tactic some past giants, like Nokia, might have underestimated.

Analyst Adjustments and Market Reactions

Recent adjustments by Wells Fargo and Deutsche Bank have caught investor attention. Wells Fargo’s revised price target of $66 signifies optimism, portraying LW as having potential untapped opportunities. Meanwhile, Deutsche Bank’s reduction to $57 hints at cautiousness and the need for LW to prove its mettle in an unpredictable market. It’s comparable to a parent cautiously watching their child step into a new sport — hopeful yet aware of the potential challenges ahead.

As the date for the earnings call and dividend payments draws closer, market activities are likely to intensify. These developments might encourage more speculative actions among traders as they gamble over short-term gains. To some, this moment is like standing at a revolving door of opportunity, weighing when to step in and when to hold back.

Conclusion: What Lies Ahead?

Lamb Weston Holdings Inc. stands on a precipice of exciting opportunities and potential risks. A robust dividend policy coupled with a consistent earnings reveal aligns with investor expectations, offering a sense of reliability. However, how the stock performs post-earnings report remains to be seen, as the broader economic environment poses its own set of challenges.

Traders eyeing LW might find this a compelling moment to either double down or survey the markets for a more opportune entry point. Much like a seasoned sailor observing the skies before setting sail, discerning traders will stay alert and ready to navigate the tides of market sentiment and financial indicators. As millionaire penny stock trader and teacher Tim Sykes, says, “It’s better to go home at zero than to go home in the red.” This cautionary advice serves as a reminder that careful observation and strategic patience can make a significant difference. Will LW’s ship sail smoothly, or will prevailing storms test its sturdiness? Only time will tell.

This content is produced using automated systems designed to deliver timely stock news. All material is reviewed by our editorial team and is provided solely for informational and entertainment purposes. It does not constitute professional investment advice. For additional details, please refer to our [Terms of Service]

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”