Latest news with #LW
Yahoo
26-05-2025
- Business
- Yahoo
3 Low-Volatility Stocks with Questionable Fundamentals
Low-volatility stocks may offer stability, but that often comes at the cost of slower growth and the upside potential of more dynamic companies. Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here are three low-volatility stocks to avoid and some better opportunities instead. Rolling One-Year Beta: 0.21 Best known for its Grown in Idaho brand, Lamb Weston (NYSE:LW) produces and distributes potato products such as frozen french fries and mashed potatoes. Why Do We Think Twice About LW? Demand is forecasted to shrink as its estimated sales for the next 12 months are flat Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 5 percentage points Low free cash flow margin for the last two years gives it little breathing room, constraining its ability to self-fund growth or return capital to shareholders At $50.56 per share, Lamb Weston trades at 14.7x forward P/E. If you're considering LW for your portfolio, see our FREE research report to learn more. Rolling One-Year Beta: 0.41 Owner of Spongebob Squarepants and formerly known as ViacomCBS, Paramount Global (NASDAQ:PARA) is a major media conglomerate offering television, film production, and digital content across various global platforms. Why Should You Sell PARA? Annual revenue declines of 2.3% over the last two years indicate problems with its market positioning Incremental sales over the last five years were much less profitable as its earnings per share fell by 22.1% annually while its revenue grew Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned Paramount's stock price of $11.99 implies a valuation ratio of 8x forward P/E. Dive into our free research report to see why there are better opportunities than PARA. Rolling One-Year Beta: 0.15 Spun off from Merck in 2021 to create a company dedicated to addressing unmet needs in women's health, Organon (NYSE:OGN) is a global healthcare company focused on improving women's health through prescription therapies, medical devices, biosimilars, and established medicines. Why Do We Avoid OGN? Customers postponed purchases of its products and services this cycle as its revenue declined by 3.8% annually over the last five years Earnings per share have contracted by 18% annually over the last four years, a headwind for returns as stock prices often echo long-term EPS performance Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 28.9 percentage points Organon is trading at $8.65 per share, or 2.2x forward P/E. Read our free research report to see why you should think twice about including OGN in your portfolio, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
Business Insider
08-05-2025
- Business
- Business Insider
Lamb Weston appoints Benjamin Heselton as Chief Information Officer
Lamb Weston (LW) has appointed Benjamin Heselton as Chief Information Officer. Heselton joins Lamb Weston from Wurth IT USA, where he served as CTO. He held various roles during his 18 years with The Wurth Group, including Chief Information Officer, and VP of Information Technology and Project Management for other divisions. Protect Your Portfolio Against Market Uncertainty Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox.
Yahoo
29-04-2025
- Business
- Yahoo
3 Reasons LW is Risky and 1 Stock to Buy Instead
Lamb Weston's stock price has taken a beating over the past six months, shedding 33.1% of its value and falling to $51.75 per share. This may have investors wondering how to approach the situation. Is now the time to buy Lamb Weston, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it's free. Even though the stock has become cheaper, we don't have much confidence in Lamb Weston. Here are three reasons why there are better opportunities than LW and a stock we'd rather own. Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Lamb Weston's revenue to stall, a deceleration versus its 17.3% annualized growth for the past three years. This projection doesn't excite us and implies its products will see some demand headwinds. Operating margin is an important measure of profitability accounting for key expenses such as marketing and advertising, IT systems, wages, and other administrative costs. Looking at the trend in its profitability, Lamb Weston's operating margin decreased by 5 percentage points over the last year. This raises questions about the company's expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Its operating margin for the trailing 12 months was 10.8%. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. Lamb Weston broke even from a free cash flow perspective over the last two years, giving the company limited opportunities to return capital to shareholders. The divergence from its good operating margin stems from its capital-intensive business model, which requires Lamb Weston to make large cash investments in working capital and capital expenditures. Lamb Weston's business quality ultimately falls short of our standards. Following the recent decline, the stock trades at 15.1× forward price-to-earnings (or $51.75 per share). Investors with a higher risk tolerance might like the company, but we don't really see a big opportunity at the moment. We're fairly confident there are better investments elsewhere. We'd recommend looking at one of our top digital advertising picks. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
27-04-2025
- Business
- Yahoo
1 Profitable Stock with Exciting Potential and 2 to Ignore
A company with profits isn't always a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential. Not all profitable companies are created equal, and that's why we built StockStory - to help you find the ones that truly shine bright. Keeping that in mind, here is one profitable company that balances growth and profitability and two best left off your watchlist. Trailing 12-Month GAAP Operating Margin: 10.8% Best known for its Grown in Idaho brand, Lamb Weston (NYSE:LW) produces and distributes potato products such as frozen french fries and mashed potatoes. Why Are We Hesitant About LW? Projected sales are flat for the next 12 months, implying demand will slow from its three-year trend Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 5 percentage points Poor free cash flow margin for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends Lamb Weston's stock price of $51.94 implies a valuation ratio of 15.1x forward price-to-earnings. To fully understand why you should be careful with LW, check out our full research report (it's free). Trailing 12-Month GAAP Operating Margin: 5.2% With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE:TGT) serves the suburban consumer who is looking for a wide range of products under one roof. Why Are We Wary of TGT? Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand Gross margin of 28% is an output of its commoditized inventory Responsiveness to unforeseen market trends is restricted due to its substandard operating profitability At $96.57 per share, Target trades at 10.4x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than TGT. Trailing 12-Month GAAP Operating Margin: 62.4% Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets. Why Are We Backing NVDA? Annual revenue growth of 120% over the last two years was superb and indicates its market share increased during this cycle Additional sales over the last five years increased its profitability as the 83.3% annual growth in its earnings per share outpaced its revenue Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute Nvidia is trading at $110.94 per share, or 25.4x forward price-to-earnings. Is now the right time to buy? See for yourself in our in-depth research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Broadcom (+634% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free.
Yahoo
27-04-2025
- Business
- Yahoo
1 Profitable Stock with Exciting Potential and 2 to Ignore
A company with profits isn't always a great investment. Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential. Not all profitable companies are created equal, and that's why we built StockStory - to help you find the ones that truly shine bright. Keeping that in mind, here is one profitable company that balances growth and profitability and two best left off your watchlist. Trailing 12-Month GAAP Operating Margin: 10.8% Best known for its Grown in Idaho brand, Lamb Weston (NYSE:LW) produces and distributes potato products such as frozen french fries and mashed potatoes. Why Are We Hesitant About LW? Projected sales are flat for the next 12 months, implying demand will slow from its three-year trend Day-to-day expenses have swelled relative to revenue over the last year as its operating margin fell by 5 percentage points Poor free cash flow margin for the last two years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends Lamb Weston's stock price of $51.94 implies a valuation ratio of 15.1x forward price-to-earnings. To fully understand why you should be careful with LW, check out our full research report (it's free). Trailing 12-Month GAAP Operating Margin: 5.2% With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE:TGT) serves the suburban consumer who is looking for a wide range of products under one roof. Why Are We Wary of TGT? Lagging same-store sales over the past two years suggest it might have to change its pricing and marketing strategy to stimulate demand Gross margin of 28% is an output of its commoditized inventory Responsiveness to unforeseen market trends is restricted due to its substandard operating profitability At $96.57 per share, Target trades at 10.4x forward price-to-earnings. Dive into our free research report to see why there are better opportunities than TGT. Trailing 12-Month GAAP Operating Margin: 62.4% Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets. Why Are We Backing NVDA? Annual revenue growth of 120% over the last two years was superb and indicates its market share increased during this cycle Additional sales over the last five years increased its profitability as the 83.3% annual growth in its earnings per share outpaced its revenue Impressive free cash flow profitability enables the company to fund new investments or reward investors with share buybacks/dividends, and its recently improved profitability means it has even more resources to invest or distribute Nvidia is trading at $110.94 per share, or 25.4x forward price-to-earnings. Is now the right time to buy? See for yourself in our in-depth research report, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Broadcom (+634% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
