Today, we are moving shares of Lamb Weston Holdings (LW) from Buy to Sell. We think highly of this company and are reluctant to part ways. However, the shares have essentially reached our $85 price target. Lamb’s recovery from the pandemic as well as the intervening potato crop shortage has been impressive. However, we now see the shares’ risk-return trade-off as no better than fair. Also, our Recommended List now includes nearly 40 stocks, so we would like to narrow our focus to those stocks with much more attractive turnaround potential.
The Lamb Weston Holdings position generated an approximate 36% total return since our initial recommendation at $61.36 in the May 2020 edition.