Eagle, Idaho-based Lamb Weston Holdings, Inc. (LW) produces, distributes, and markets frozen potato products. Valued at $6.9 billion by market cap, the company offers fries, oven roasted potatoes, puffs, chips, slices, and prepared potato products.
Shares of this french fry giant have underperformed the broader market over the past year. LW has declined 13% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 11.8%. However, in 2026, LW stock is up 18.9%,surpassing SPX’s marginal fall on a YTD basis.
Narrowing the focus, LW’s underperformance is also apparent compared to the Consumer Staples Select Sector SPDR Fund (XLP). The exchange-traded fund has gained about 9.9% over the past year. However, LW’s gains on a YTD basis outshine the ETF’s 15.2% returns over the same time frame.
On Dec. 19, 2025, LW shares plunged 25.9% after reporting its Q2 results. Its adjusted EPS of $0.69 exceeded Wall Street expectations of $0.67. The company’s revenue was $1.62 billion, beating Wall Street forecasts of $1.59 billion. LW expects full-year revenue in the range of $6.4 billion to $6.6 billion.
For the current fiscal year, ending in May, analysts expect LW’s EPS to decline 17.6% to $2.76 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 12 analysts covering LW stock, the consensus is a “Hold.” That’s based on three “Strong Buy” ratings, eight “Holds,” and one “Strong Sell.”
This configuration is less bullish than two months ago, with an overall “Moderate Buy” rating, consisting of four analysts suggesting a “Strong Buy.”
On Jan. 13, Wells Fargo & Company (WFC) analyst Marc Torrente maintained a “Buy” rating on LW and set a price target of $54, implying a potential upside of 8.4% from current levels.
The mean price target of $53.64 represents a 7.7% premium to LW’s current price levels. The Street-high price target of $69 suggests an ambitious upside potential of 38.5%.
