On Monday, Lamb Weston Holdings Inc. (NYSE:LW) shares edged slightly high ahead of its fiscal second-quarter results. The company is expected to announce its most recent quarterly revenue and earnings on Thursday.
Analysts expect its earnings per share to decline from the same quarter last year, while the top line is expected to improve.
The stock rallied more than 27% last month after plunging to set a new 18-month low in November. However, shares remain 15% down over the last 12 months.
The American food processing company is one of the world’s largest producers and processors of frozen french fries.
Lamb Weston’s growth prospects
From an investment perspective, although analysts expect the company’s earnings per share to decline in FQ2, they still forecast an EPS growth of nearly 78% next year and average annual growth of about 11.40% over the next five years.
In addition, although its stock gained more than 27% last month, shares still trade at reasonable trailing 12-month and forward P/E ratios of 36.40 and 23.47, respectively.
Therefore, the stock could be an attractive option for investors looking for both value and growth.
Source – TradingView
Technically, Lamb Weston shares seem to be trading within an ascending channel formation in the intraday chart. As a result, the stock has advanced deep into overbought conditions, creating a perfect opportunity for a technical pullback.
Therefore, investors could target potential pullbacks at about $60.80, or lower at $57.27, while $66.72 and $70.12 are crucial resistance zones.
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