Lamb Weston (NYSE: LW) has its share of issues, not least of all the lingering impact of the botched rollout of its enterprise resource planning (ERP) platform, which is now more of a mental hang-up than anything else. It also has an active turnaround strategy, supported by activist investors, that is starting to show results.
While sales remain sluggish, margins are improving, setting the stage for accelerated earnings growth in upcoming quarters. The capital return capacity is healthy and improving quarterly, enabling dividends and share buybacks, the primary reason for owning consumer staples stocks.
