Do Wall Street Experts Favor Lamb Weston Shares?

Lamb Weston Holdings, Inc.: Company Overview

Headquartered in Eagle, Idaho, Lamb Weston Holdings, Inc. (LW) specializes in the production, distribution, and sale of frozen potato products. With a market capitalization of $6.9 billion, the company’s product lineup includes french fries, oven-roasted potatoes, potato puffs, chips, slices, and other ready-to-eat potato offerings.

Stock Performance Analysis

Over the past year, Lamb Weston’s stock has lagged behind the broader market. While LW shares have dropped 13% during this period, the S&P 500 Index ($SPX) has climbed nearly 11.8%. However, so far in 2026, LW has rebounded, rising 18.9% year-to-date, outperforming the SPX, which has seen a slight decline.

Comparative Performance with Sector Peers

When compared to the Consumer Staples Select Sector SPDR Fund (XLP), LW’s performance also stands out. XLP has gained approximately 9.9% over the last year, but LW’s year-to-date growth surpasses the ETF’s 15.2% return for the same period.

Recent Earnings and Outlook

On December 19, 2025, LW shares fell sharply by 25.9% following the release of its second-quarter results. The company reported adjusted earnings per share of $0.69, beating analysts’ expectations of $0.67. Revenue reached $1.62 billion, also exceeding the forecast of $1.59 billion. For the full year, Lamb Weston projects revenue between $6.4 billion and $6.6 billion.

For the fiscal year ending in May, analysts anticipate a 17.6% decrease in diluted EPS to $2.76. Despite this, Lamb Weston has consistently surpassed consensus earnings estimates in each of the last four quarters.

Analyst Ratings and Price Targets

Among the 12 analysts covering LW, the consensus rating is “Hold,” with three recommending a “Strong Buy,” eight suggesting “Hold,” and one issuing a “Strong Sell.”

This marks a less optimistic stance compared to two months ago, when the stock held an overall “Moderate Buy” rating, including four “Strong Buy” recommendations.

On January 13, Wells Fargo & Company (WFC) analyst Marc Torrente reaffirmed a “Buy” rating for LW, setting a price target of $54, which implies an 8.4% potential upside from current levels.

The average price target stands at $53.64, representing a 7.7% premium over the current share price. The highest target, at $69, indicates a possible increase of 38.5%.