Lamb Weston Holdings, Inc. (NYSE: LW) is one of the 13 Best Consumer Staples Dividend Stocks to Invest in Now.
On December 23, Barclays lowered its price target on Lamb Weston Holdings, Inc. (NYSE: LW) from $68 to $55 and maintained an overweight on the stock. The company acknowledged investor frustration after the company reported higher EBITDA for the first half of fiscal 2026 without raising its guidance. Despite this, Barclays said the broader picture for the chip industry remained “bright” and the subsequent 26% sell-off in the stock was overdone.
A few days earlier, on December 18, Lamb Weston Holdings, Inc. (NYSE: LW) announced that it was keeping its full-year sales outlook stable for the second time this year. This occurred despite the company significantly beating quarterly expectations. Jefferies analysts noted that the reaffirmation of guidance after such a setback points to a softer second half than the market had expected.
Consumer behavior is part of the story. Persistent inflation and trade uncertainty have pushed people to cut back on non-essential spending, including dining out. This reduced restaurant traffic, a major driver of demand for frozen potato products. International sales increased 4% year-over-year in the second quarter. In North America, which generates the bulk of the company’s revenue, sales were flat at $1.07 billion. The company also faces tariff risk from imported inputs such as palm oil, even as prices of other raw materials, notably potatoes, have fallen.
Lamb Weston maintained its annual revenue forecast between $6.35 billion and $6.55 billion. The midpoint of this range is below the consensus estimate of $6.52 billion, based on LSEG data. For the quarter ended November 23, the company reported revenue of $1.62 billion, beating expectations of $1.59 billion. Adjusted earnings came in at 69 cents per share, ahead of the estimate of 65 cents.
Lamb Weston Holdings, Inc. (NYSE: LW) operates as a global producer, marketer and marketer of value-added frozen potato products.
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