Was Jim Cramer Right About These 12 Stocks?

7. Lamb Weston Holdings (NYSE:LW)

Number of Hedge Fund Investors: 39

Lamb Weston had suffered a brutal 28% collapse, its second major earnings disaster in a row. The company, which supplies frozen potato products, had become one of the worst-performing stocks in the S&P 500. Cramer wasn’t surprised at the time and said:

“Lamb Weston was a total home run for a long time, but suddenly, it’s one of the worst stocks in the market.”

He then highlighted the company’s problems, such as reduced restaurant traffic, the potato glut that has been killing its margins and that GLP-1 weight loss drugs were big threats to the stock. But he also saw an opportunity in the weakness, saying:

“At some point, The Great Potato Glut will end. This stock has been cut in half—it’s now dirt cheap.”

Even if Lamb Weston disappoints further, the downside may be limited. Cramer wasn’t calling a bottom at the time, but for investors with patience, he saw a chance to pick up shares slowly before a long-term recovery.

It appears that Cramer was spot on with this one. Although the stock hasn’t performed exceptionally, being up by just 6% since, the stock did hit its bottom a few days before the program aired on July 29th.