Back to top

Image: Bigstock

Lifeway Foods (LWAY) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Lifeway Foods (LWAY - Free Report) closed at $24.84 in the latest trading session, marking a +0.36% move from the prior day. The stock's change was less than the S&P 500's daily gain of 1.23%. On the other hand, the Dow registered a gain of 1.02%, and the technology-centric Nasdaq increased by 1.43%.

Shares of the dairy and cheese company have depreciated by 6.25% over the course of the past month, underperforming the Consumer Staples sector's loss of 2.61% and the S&P 500's loss of 0.54%.

The upcoming earnings release of Lifeway Foods will be of great interest to investors. In that report, analysts expect Lifeway Foods to post earnings of $0.27 per share. This would mark year-over-year growth of 17.39%. Meanwhile, the latest consensus estimate predicts the revenue to be $51.5 million, indicating a 25.92% increase compared to the same quarter of the previous year.

LWAY's full-year Zacks Consensus Estimates are calling for earnings of $0.99 per share and revenue of $199.79 million. These results would represent year-over-year changes of +32% and +24.77%, respectively.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Lifeway Foods. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Lifeway Foods presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Lifeway Foods is presently being traded at a Forward P/E ratio of 25. Its industry sports an average Forward P/E of 18.66, so one might conclude that Lifeway Foods is trading at a premium comparatively.

The Food - Dairy Products industry is part of the Consumer Staples sector. With its current Zacks Industry Rank of 97, this industry ranks in the top 39% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Lifeway Foods, Inc. (LWAY) - free report >>

Published in