Lamb Weston (LW)

Lamb Weston (LW)

Postby winston » Fri Oct 13, 2017 2:12 pm

not vested

Stocks to Buy for the Next Decade: Lamb Weston (LW)

Investors might not be familiar with Lamb Weston Holdings Inc (NYSE:LW). The company was spun off by Conagra Brands Inc (NYSE:CAG) almost a year ago, and LW stock has gained nicely since then.

However, most investors know one of the company’s key products: the McDonald’s Corporation (NYSE:MCD) French fry. McDonald’s accounts for 11% of the company’s sales, and other fast-food chains provide a substantial amount of sales as well.

Lamb Weston’s frozen potato products also are sold to smaller chains, independent restaurants, and overseas customers, along with a smaller presence at retail.

Growth has been steady, margins continue to expand, and those international customers offer growth opportunities as French fry demand increases beyond the U.S.

LW stock isn’t necessarily cheap, but relative to other food producers it’s not terribly expensive. But with limited exposure to pricing pressure and deflation in supermarkets, the stock should trade at a premium.

A 1.5% dividend adds income, and a sub-$50 price still looks cheap. As long as consumers eat French fries, LW stock should continue to rise. And one imagines that French fry demand isn’t going to decline any time soon, whether at McDonald’s or anywhere else.

Source: Investor Place
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Lamb Weston (LW)

Postby winston » Wed Oct 24, 2018 7:39 pm

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DOUBLE-DIGIT RETURNS FROM 'SELLING THE BASICS'

Today's chart reminds us that even "boring" businesses can bring stellar returns...

Regular readers know you don't need to buy flashy companies if you want to make big gains. Businesses that sell the basics – like breakfast cereal, paint, and auto parts – often make the most reliable investments... And what's more basic than frozen food?

Lamb Weston (LW) is one of the world's leading suppliers of frozen potato products. The company holds dozens of production patents... So it can market potatoes in every shape imaginable – from crinkle-cut and curly fries to tater tots and wedges.

It's no hot tech stock. But this company is thriving... In the latest quarter, Lamb Weston grew net sales to $915 million. And it increased earnings per share 28% from the same period last year.

And as you can see, the stock recently hit a new 52-week high. Shares have soared more than 50% over the past year. While the frozen-food business isn't the most exciting market, Lamb Weston proves that selling the basics can pay off...

Source: Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Lamb Weston (LW)

Postby winston » Thu Dec 05, 2019 10:33 pm

'SELLING THE BASICS' WINS AGAIN IN FROZEN FOOD

Today's chart highlights a steady business that's rewarding investors...

Regular readers know that it doesn't take a flashy business to make great returns. Businesses that sell the basics, like soda, snacks, and soap can be fantastic investments.

People buy these things for everyday use, so they're in constant demand. And today's company sells one of the most basic of the basics... frozen food.

Lamb Weston (LW) was founded in 1950 as a family business... but today, it's one of the world's leading suppliers of frozen potato products. From crinkle cuts to steak fries to shoestrings, Lamb Weston has french fries for almost everyone... And business is good.

The company recently released solid quarterly results for the first quarter of fiscal 2020, with net sales up 8% to $989 million.

As you can see, LW shares have consistently marched higher... They're up nearly 200% over the past three years, including dividends. And as stores and restaurants keep restocking on french fries, that trend should keep going...

Source: Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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