73.45 -0.67 (-0.92%) Sell

Doubt in the minds of LW investors as it ranked among the worst performers

13 min read

LAMB WESTON HOLDINGS, INC. delivered massive losses on Friday. It fell by -0.92% to close at 73.45. It is currently trading +37% above it's 52 week low of 53.51 and is down only -11% from it's 52 week high.

[Themes containing LW]

LW is currently in a bearish trend. The previous short signal in LW has not been profitable for investors in general. If you are short on LW at current levels please make sure that your allocation is limited and that your portfolio is well diversified.


LW has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 11 Nov, 2016 to 13 Nov, 2018. Over the last 2 years and 1 month, LW outperformed the SP500 index on 56% days.

LW was profitable on 50% days in the last three months. During this time, it delivered on average +0.16% per day. It delivered it's best daily return of +9.19%, during this period, on Tuesday, 2 Oct, 2018. The longest stort-term trend during this period was 10 losing days, which started on 23 Nov, 2018 and ended on 7 Dec, 2018. This bearish trend lost -10.65% of investor capital.

During the last year LW had 6 profitable months and 6 loss making months. LW returned profits in fewer months than SP500 index. LW significantly outperformed SP500 index in Oct 2018, when it returned +18.53% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. LW had a shorter streak of profitable months than SP500 index. It only went up in 2 straight months during the last year. It is interesting to note that both LW and SP500 index significantly outperform during months when quarterly/annual results are announced.

You can only become truly accomplished at something you love. Don't make money your goal. Instead, pursue the things you love doing, and then do them so well that people can't take their eyes off you.
-- Maya Angelou

LW is currently seeing overall increase in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in LW's volatility from 10 Sep, 2018 to 6 Dec, 2018. While there was a significant surge in the SP500 index's volatility from 10 Sep, 2018 to 29 Oct, 2018.

Advanced/professional short-term investors should note that LW has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

LW has more chance of extreme outcomes than the SP500 index. Therefore, LW must receive a lower allocation than SP500 in your portfolio. SP500 index usually has shorter drawdown period than LW.

Based on your interest in LW you may find it interesting to know that AMZN, MSFT and CSCO are large caps that have all shown remarkable performance and qualify to be on every investor's watchlist.

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