Nasdaq Dips 6% Following Trump's Tariffs As Nvidia, Apple Decline: Investor Sentiment Plunges, Greed Index Remains In 'Extreme Fear' Zone
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 04 2025
0mins
Should l Buy LW?
Source: Benzinga
Market Sentiment: The CNN Money Fear and Greed index indicates a significant decline in market sentiment, remaining in the "Extreme Fear" zone at a reading of 7.7, as U.S. stocks, including major companies like Apple and Amazon, experienced substantial losses following new trade tariffs announced by President Trump.
Economic Data: Despite the overall market downturn, initial jobless claims fell to 219,000, and the U.S. trade deficit decreased to $122.7 billion in February; however, the ISM services PMI dropped to 50.8, indicating a slowdown in service sector growth.
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Analyst Views on LW
Wall Street analysts forecast LW stock price to rise
9 Analyst Rating
3 Buy
6 Hold
0 Sell
Moderate Buy
Current: 42.540
Low
48.00
Averages
54.44
High
65.00
Current: 42.540
Low
48.00
Averages
54.44
High
65.00
About LW
Lamb Weston Holdings, Inc. is a global producer, distributor, and marketer of value-added frozen potato products. The Company is a supplier of frozen potato, sweet potato, appetizer and vegetable products to restaurants and retailers around the globe. The Company’s segments include North America and International. The Company’s frozen potato products are sold in North America and international markets generally to North American-based restaurant chains and international customers, comprised of global and regional quick service and full-service restaurant chains, foodservice distributors, and retailers. Its product portfolio includes frozen potatoes and appetizers sold under the Lamb Weston brand, as well as many customer labels. The Company’s product categories include classic fries, extra crispy fries, sweet potatoes, and other products. Its recipes include appetizers, desserts, dips, sauces and seasonings, entree, salad, side dishes, and topped and loaded.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Starboard Value Pushes Lamb Weston for Investor Day to Boost Earnings Growth
- Investor Pressure: Activist investor Starboard Value LP is urging Lamb Weston to hold an Investor Day to clarify its earnings growth plans, reflecting investor concerns as the company's shares have dropped 18% over the past year.
- Earnings Stagnation: While Lamb Weston has made progress in improving volume trends, earnings have not grown, and Starboard emphasizes the need for the company to articulate a clear path forward to rebuild investor confidence, highlighting the importance of an Investor Day.
- Cost Savings Initiative: Starboard points out that Lamb Weston aims for 25% adjusted EBITDA margins by FY2029, and although the company has announced a $250 million cost savings program, it has primarily focused on cost of goods sold, neglecting SG&A expenses that have nearly tripled over the past decade.
- Strategic Unit Evaluation: Starboard also recommends that Lamb Weston evaluate its strategic business units to optimize its portfolio, indicating that the company needs to take more proactive measures to enhance overall operational efficiency and profitability at this critical juncture.
See More
Lamb Weston Releases 2025 Global Sustainability Report
- Safety and Health Improvement: In fiscal year 2025, Lamb Weston achieved over a 15% year-over-year reduction in recordable injury rates, demonstrating the company's ongoing commitment to employee safety and health, which enhances morale and productivity.
- Significant Community Contributions: The company donated over $830,000 to community programs, including food banks, reflecting its commitment to social responsibility and helping to enhance brand image and customer loyalty.
- Food Safety Assurance: The Global Food Safety Initiative (GFSI) certification rate for Tier 1 ingredient supplier facilities reached 99.5%, with over 230 audits completed, ensuring product quality and safety, thereby strengthening customer trust and market competitiveness.
- Environmental Protection Achievements: In fiscal year 2025, Lamb Weston achieved a 6% year-over-year reduction in freshwater use intensity, with 85% of primary packaging being recyclable or reusable and 98% of waste diverted from landfills, showcasing the company's proactive progress in environmental sustainability, aligning with global eco-friendly trends.
See More
Campbell's Faces Risk of S&P 500 Demotion
- Earnings Miss: Campbell's reported adjusted EPS of $0.51 for Q2 FY2026, falling short of the $0.57 estimate by 11%, while net sales dropped 5% to $2.56 billion, indicating significant challenges in a competitive market.
- Guidance Downgrade: Management lowered full-year adjusted EPS guidance to $2.15-$2.25 from $2.55, with projected organic net sales declining by 1%-2%, reflecting a concerning trend of stagnation in growth.
- Market Cap Erosion: The stock price has plummeted over 40% in the past year, resulting in a market cap of approximately $6.9 billion, making it the second lowest in the S&P 500, raising concerns about potential removal from the index, especially after four companies were recently demoted for similar reasons.
- Brand Strength vs. Challenges: While Campbell's boasts a valuable brand portfolio including Goldfish and V8, the critical question remains whether management can stabilize the business quickly enough to prevent further market cap erosion, with no clear catalysts on the horizon.
See More
Campbell's Faces Risk of S&P 500 Demotion
- Earnings Decline: Campbell's reported adjusted EPS of $0.51 for Q2 2026, missing the $0.57 estimate by 11%, while net sales fell 5% to $2.56 billion, indicating ongoing operational challenges.
- Guidance Cut: Management lowered full-year adjusted EPS guidance to $2.15-$2.25 from a previous high of $2.55, reflecting a pessimistic outlook on future performance amid declining sales.
- Market Share Erosion: The snacks division's operating earnings dropped to $67 million on $914 million in revenue, resulting in a 7.3% operating margin that is insufficient to justify the acquisition, highlighting integration issues.
- Stock Price Plunge: Over the past year, Campbell's stock has fallen more than 40%, with a market cap of approximately $6.9 billion, making it the second-lowest in the S&P 500 and raising concerns about its continued inclusion in the index.
See More
Lamb Weston Reports Strong Q3 Earnings and Raises Sales Guidance
- Earnings Performance: Lamb Weston reported strong Q3 earnings, with specific figures not disclosed, indicating the company's competitiveness and stability in the market, which may attract more investor interest.
- Sales Guidance Increase: The company raised its future sales guidance, reflecting management's optimistic outlook on market demand, which is expected to drive stock price appreciation and bolster investor confidence.
- Mixed Analyst Opinions: Despite the strong performance, analysts have mixed opinions on the stock, with some suggesting potential price pressure, which could influence investor decision-making.
- Market Reaction: The market reacted positively to Lamb Weston's earnings and guidance increase; although analyst opinions vary, the overall trend may facilitate further development of the company within the industry.
See More
Chilled Performance: Lamb Weston Exceeds Earnings Expectations, Yet Stock Declines
Earnings Report: Lamb Weston reported a strong Q3 FY2026 earnings with a revenue of $1.56 billion, surpassing estimates, but its stock has declined over 8% in 2026 due to ongoing investor concerns about earnings pressure and market challenges.
Sales Growth vs. Earnings Decline: Despite increasing sales, the company continues to face lower earnings year-over-year, attributed to factors like industry supply dynamics and factory utilization, which have compounded earnings pressure.
Cost-Saving Initiatives: Management has set an aggressive cost-saving goal of $250 million, which is on track to be surpassed, as they navigate through a challenging macroeconomic environment and slow restaurant traffic in key international markets.
Investment Outlook: Analysts suggest that Lamb Weston may present a value opportunity for long-term investors, especially given its consistent dividend increases and the potential for recovery in margins, despite current market pressures.
See More
Starboard Value Pushes Lamb Weston for Investor Day to Boost Earnings Growth
- Investor Pressure: Activist investor Starboard Value LP is urging Lamb Weston to hold an Investor Day to clarify its earnings growth plans, reflecting investor concerns as the company's shares have dropped 18% over the past year.
- Earnings Stagnation: While Lamb Weston has made progress in improving volume trends, earnings have not grown, and Starboard emphasizes the need for the company to articulate a clear path forward to rebuild investor confidence, highlighting the importance of an Investor Day.
- Cost Savings Initiative: Starboard points out that Lamb Weston aims for 25% adjusted EBITDA margins by FY2029, and although the company has announced a $250 million cost savings program, it has primarily focused on cost of goods sold, neglecting SG&A expenses that have nearly tripled over the past decade.
- Strategic Unit Evaluation: Starboard also recommends that Lamb Weston evaluate its strategic business units to optimize its portfolio, indicating that the company needs to take more proactive measures to enhance overall operational efficiency and profitability at this critical juncture.
See More
Lamb Weston Releases 2025 Global Sustainability Report
- Safety and Health Improvement: In fiscal year 2025, Lamb Weston achieved over a 15% year-over-year reduction in recordable injury rates, demonstrating the company's ongoing commitment to employee safety and health, which enhances morale and productivity.
- Significant Community Contributions: The company donated over $830,000 to community programs, including food banks, reflecting its commitment to social responsibility and helping to enhance brand image and customer loyalty.
- Food Safety Assurance: The Global Food Safety Initiative (GFSI) certification rate for Tier 1 ingredient supplier facilities reached 99.5%, with over 230 audits completed, ensuring product quality and safety, thereby strengthening customer trust and market competitiveness.
- Environmental Protection Achievements: In fiscal year 2025, Lamb Weston achieved a 6% year-over-year reduction in freshwater use intensity, with 85% of primary packaging being recyclable or reusable and 98% of waste diverted from landfills, showcasing the company's proactive progress in environmental sustainability, aligning with global eco-friendly trends.
See More
Campbell's Faces Risk of S&P 500 Demotion
- Earnings Miss: Campbell's reported adjusted EPS of $0.51 for Q2 FY2026, falling short of the $0.57 estimate by 11%, while net sales dropped 5% to $2.56 billion, indicating significant challenges in a competitive market.
- Guidance Downgrade: Management lowered full-year adjusted EPS guidance to $2.15-$2.25 from $2.55, with projected organic net sales declining by 1%-2%, reflecting a concerning trend of stagnation in growth.
- Market Cap Erosion: The stock price has plummeted over 40% in the past year, resulting in a market cap of approximately $6.9 billion, making it the second lowest in the S&P 500, raising concerns about potential removal from the index, especially after four companies were recently demoted for similar reasons.
- Brand Strength vs. Challenges: While Campbell's boasts a valuable brand portfolio including Goldfish and V8, the critical question remains whether management can stabilize the business quickly enough to prevent further market cap erosion, with no clear catalysts on the horizon.
See More
Campbell's Faces Risk of S&P 500 Demotion
- Earnings Decline: Campbell's reported adjusted EPS of $0.51 for Q2 2026, missing the $0.57 estimate by 11%, while net sales fell 5% to $2.56 billion, indicating ongoing operational challenges.
- Guidance Cut: Management lowered full-year adjusted EPS guidance to $2.15-$2.25 from a previous high of $2.55, reflecting a pessimistic outlook on future performance amid declining sales.
- Market Share Erosion: The snacks division's operating earnings dropped to $67 million on $914 million in revenue, resulting in a 7.3% operating margin that is insufficient to justify the acquisition, highlighting integration issues.
- Stock Price Plunge: Over the past year, Campbell's stock has fallen more than 40%, with a market cap of approximately $6.9 billion, making it the second-lowest in the S&P 500 and raising concerns about its continued inclusion in the index.
See More
Lamb Weston Reports Strong Q3 Earnings and Raises Sales Guidance
- Earnings Performance: Lamb Weston reported strong Q3 earnings, with specific figures not disclosed, indicating the company's competitiveness and stability in the market, which may attract more investor interest.
- Sales Guidance Increase: The company raised its future sales guidance, reflecting management's optimistic outlook on market demand, which is expected to drive stock price appreciation and bolster investor confidence.
- Mixed Analyst Opinions: Despite the strong performance, analysts have mixed opinions on the stock, with some suggesting potential price pressure, which could influence investor decision-making.
- Market Reaction: The market reacted positively to Lamb Weston's earnings and guidance increase; although analyst opinions vary, the overall trend may facilitate further development of the company within the industry.
See More
Chilled Performance: Lamb Weston Exceeds Earnings Expectations, Yet Stock Declines
Earnings Report: Lamb Weston reported a strong Q3 FY2026 earnings with a revenue of $1.56 billion, surpassing estimates, but its stock has declined over 8% in 2026 due to ongoing investor concerns about earnings pressure and market challenges.
Sales Growth vs. Earnings Decline: Despite increasing sales, the company continues to face lower earnings year-over-year, attributed to factors like industry supply dynamics and factory utilization, which have compounded earnings pressure.
Cost-Saving Initiatives: Management has set an aggressive cost-saving goal of $250 million, which is on track to be surpassed, as they navigate through a challenging macroeconomic environment and slow restaurant traffic in key international markets.
Investment Outlook: Analysts suggest that Lamb Weston may present a value opportunity for long-term investors, especially given its consistent dividend increases and the potential for recovery in margins, despite current market pressures.
See More
