Topic: How To Invest

Q: Hello, Pat. What is your position on Lamb Weston?

Article Excerpt

A: Lamb Weston Holdings Inc., $70.01, symbol LW on New York (Shares outstanding: 146.5 million; Market cap: $10.3 billion; www.lambweston.com), is a recommendation of our Wall Street Stock Forecaster newsletter. Lamb Weston was a wholly owned subsidiary of Conagra Brands (symbol CAG on New York, and also a recommendation of Wall Street Stock Forecaster) until November 9, 2016. That’s when Conagra set up Lamb Weston as a separate company. It then handed its investors one Lamb Weston share for every three Conagra shares they held. Now an independent company, Lamb Weston is a leading producer of frozen french fries, potatoes and other packaged vegetables. It accounts for roughly 42% of the North American frozen potato market. Worldwide, its market share is 23%. In its fiscal 2019 second quarter, ended November 25, 2018, the company’s sales rose 10.5%, to $911.4 million from $824.6 million a year earlier. The improved results are due to both higher selling prices (up 6%) and volumes (up 5%). Excluding one-time…