7 Best Future Food Stocks to Buy According to Analysts

3. Lamb Weston Holdings, Inc. (NYSE:LW)

Potential Upside: 51.57%

Number of Hedge Funds Holders: 47

Lamb Weston Holdings, Inc. (NYSE:LW) is a key player in the global frozen potato market. It provides frozen potatoes, commercial ingredients, and appetizers, serving across the globe, including the U.S., Canada, and Mexico.

The company reported an 8% decrease in its net sales to $1.6 billion for the quarter ended November 24, 2024. This decrease was driven by lower global demand and soaring manufacturing costs. Due to lower restaurant traffic and pressure from competitors, volume decreased 6%. However, the company remains determined to foster long-term growth through cost-cutting initiatives and operational efficiency improvement.

Accordingly, Lamb Weston Holdings, Inc. (NYSE:LW) is implementing a restructuring plan to improve efficiency and bring production up to speed with current market conditions. The company is expected to generate around $55 million in pre-tax cost savings for fiscal 2025 through permanent facility closures, short-term production cuts, and a decrease in workforce. The company is also investing in supply chain optimization and is reducing manufacturing costs to enhance profitability.

Despite short-term concerns, Lamb Weston Holdings, Inc. (NYSE:LW) exhibited grit in several areas. The company reported $1.07 billion in sales for its North American segment, focusing on strategic pricing to recover volume. Lamb Weston also continues to increase its global presence, with expansions in China, the Netherlands, and Argentina, fostering sustained growth.

Lamb Weston reevaluated its forecast for the full-year fiscal 2025 to reflect changing operating dynamics, lowering forecasted net sales to a range of $6.35 billion to $6.45 billion. It is expected that diluted EPS will be between $3.05 and $3.20. These changes mirror short-term challenges; however, the company is poised for long-term growth with its planned expansions.

Thus, Lamb Weston Holdings, Inc. (NYSE:LW) remains a formidable choice among the Best Future Food Stocks to Buy.