Lamb Weston Stock: Is LW Underperforming the Consumer Defensive Sector?

With a market cap of $8.3 billion, Lamb Weston Holdings, Inc. (LW) is a food company specializing in the production, distribution, and marketing of frozen potato products across the United States, Canada, Mexico, and international markets. The company offers a wide range of frozen potatoes, commercial ingredients, and appetizers under the Lamb Weston brand, as well as owned, licensed, and private-label brands such as Grown in Idaho and Alexia. 

Companies valued less than $10 billion are generally considered "mid-cap" stocks, and Lamb Weston fits this criterion perfectly. Lamb Weston serves quick-service and full-service restaurants, retailers, and foodservice institutions through a broad network of sales personnel, brokers, and distributors.

Shares of the Eagle, Idaho-based company have pulled back 28.1% from its 52-week high of $83.98. LW stock has risen 7.7% over the past three months, outpacing the Consumer Staples Select Sector SPDR Fund’s (XLP) marginal gain over the same time frame.

Longer term, LW stock is down 9.6% on a YTD basis, underperforming XLP’s 1.4% rise. Moreover, shares of Lamb Weston have dipped 23.8% over the past 52 weeks, compared to XLP’s 2.9% drop over the same time frame.

The stock has been trading below its 50-day moving average since early November. 

Shares of Lamb Weston soared 4.3% on Sept. 30 after the company reported Q1 2026 adjusted EPS of $0.74 and net sales reached $1.66 billion, surpassing estimates. Investor optimism was further fueled by 6% volume growth, improved cost savings and lower SG&A expenses, and management’s solid full-year outlook projecting net sales of $6.35 billion - $6.55 billion and adjusted EBITDA of $1 billion - $1.20 billion.

In comparison, rival Kellanova (K) has outpaced LW stock. Shares of Kellanova have gained 3.4% over the past 52 weeks and 3.1% on a YTD basis.

Despite the stock’s weak performance, analysts are moderately optimistic about its prospects. LW stock has a consensus rating of “Moderate Buy” from the 12 analysts covering it, and the mean price target of $65.27 is a premium of 8.6% to current levels.