Lamb Weston Story

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LW -- USA Stock  

USD 78.55  1.14  1.47%

Lamb Weston Share Based Compensation is fairly stable at the moment as compared to the past year. Lamb Weston reported Share Based Compensation of 26.22 Million in 2020. Current Assets is likely to climb to about 2.9 B in 2021, whereas Free Cash Flow is likely to drop slightly above 390.2 M in 2021. The fundamental intend behind this short review is to break down our forecasting of Lamb Weston for sophisticated investors. We will try to forecast Lamb Weston outlook for May.
Published few days ago
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What can we learn from Lamb Weston (NYSE:LW) latest price fluctuation
Over 89.0% of Lamb Weston shares are owned by institutional investors. Institutional ownership of Lamb Weston Holdings refers to the amount of Lamb Weston Holdings equity owned by mutual funds, pension funds, insurance companies, investment firms, foundations, or other large entities that manage money on behalf of others. Check out our latest analysis of Lamb Weston, including its current ownership diagnostics.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Lamb Weston Holdings. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Lamb Weston

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Lamb Weston's stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Lamb Weston in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Lamb Weston. Your research has to be compared to or analyzed against Lamb Weston's peers to derive any actionable benefits. When done correctly, Lamb Weston's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Lamb Weston Holdings.

How important is Lamb Weston's Liquidity

Lamb Weston financial leverage refers to using borrowed capital as a funding source to finance Lamb Weston Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Lamb Weston financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Lamb Weston's total debt and its cash.

How Lamb Weston utilizes its cash?

To perform a cash flow analysis of Lamb Weston, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Lamb Weston is receiving and how much cash it distributes out in a given period. The Lamb Weston cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Lamb Weston Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Lamb Weston reported Net Cash Flow from Operations of 660.1 Million in 2020

Another Outlook On Lamb Weston

Lamb Weston Holdings has relatively low volatility with skewness of -0.1 and kurtosis of 0.18. However, we advise all investors to independently investigate Lamb Weston Holdings to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lamb Weston's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lamb Weston's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Margin Breakdown

Operating Margin13.23
EBITDA Margin0.24
Gross Margin0.28
Profit Margin0.11

Will Lamb Weston continue to climb?

Latest downside deviation is at 1.96. Lamb Weston Holdings has relatively low volatility with skewness of -0.1 and kurtosis of 0.18. However, we advise all investors to independently investigate Lamb Weston Holdings to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Lamb Weston's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Lamb Weston's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Takeaway

While some other companies under the packaged foods industry are still a bit expensive, Lamb Weston may offer a potential longer-term growth to sophisticated investors. While some sophisticated investors may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Lamb Weston.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Lamb Weston Holdings. Please refer to our Terms of Use for any information regarding our disclosure principles.

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