Jim Cramer Highlights the Possible Struggles of Lamb Weston Holdings

Lamb Weston Holdings, Inc. (NYSE:LW) is one of the stocks Jim Cramer discussed amid the reshuffling of the S&P 500. Cramer highlighted the major decline in the stock over the past couple of years, as he said:

Third, Lamb Weston sells frozen potatoes. They dominate that entire business. The company was spun off by Conagra in 2016, and for a big chunk of the following decade, Lamb Weston was a consistent winner. But in the last few years, the stock’s been eviscerated. Now, look, maybe it’s a victim of the GLP-1 weight loss drugs, or maybe it just reflects the broader struggles of the restaurant industry. Either way, the stock’s down 55% over the past two years to the point where Lamb Weston’s become a $6.4 billion company. It’s now the subject, by the way, of an activist push from Starboard Value, a very smart firm that wants Lamb Weston to aggressively cut costs.

Photo by Chris Liverani on Unsplash

Lamb Weston Holdings, Inc. (NYSE:LW) produces and markets frozen potato products, appetizers, and commercial ingredients and distributes them through its network of sales personnel and independent brokers to restaurant chains, grocery stores, and foodservice institutions.

While we acknowledge the potential of LW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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