Valued at a market cap of $7,6 billion, Lamb Weston Holdings, Inc. (LW) is a leading global producer of frozen potato products, best known for its French fries, waffle fries, and related items. Headquarters in Eagle, Idaho, the company now employs around 10,700 people and serves restaurant chains and retailers worldwide. 

Companies valued between $2 billion and $10 billion are typically classified as “mid-cap stocks,” and LW fits the label perfectly. 

However, LW has retreated 37% from its 52-week high of $85.79, achieved on June 25, 2024. It has soared 1.9% over the past three months, underperforming the broader Nasdaq Composite’s ($NASX) 10.4% rise over the same time frame.

Lamb Weston has dropped 36.3% over the past 52 weeks, sharply underperforming the NASDAQ’s 11% gain during the same period. Year-to-date, the stock is down 19.1%, again trailing the NASDAQ’s 1.7% increase. 

LW has spent much of the past year trading below its 200-day moving average, though it has recently moved slightly above its 50-day moving average.

Lamb Weston’s stock jumped 10% on April 3 following the release of its Q3 earnings, which exceeded market expectations. The company posted a 4.3% year-over-year increase in revenue, reaching $1.5 billion and topping Wall Street forecasts. Adjusted EBITDA stood at $363.8 million with a strong margin of 23.9%, also beating analyst estimates. Additionally, adjusted earnings came in at $1.10 per share, surpassing consensus projections by an impressive 26.4%.

LW has underperformed its rival, Conagra Brands, Inc. (CAG), which declined 25% over the past 52 weeks.

The stock has a consensus rating of “Moderate Buy” from the 11 analysts covering it, and the mean price target of $63.18 suggests a 16.8% premium to the current price levels.