Should You Be Confident in Lamb Weston Holdings' (LW) Attractive Long-Term Growth?

The London Company, an investment management company, released its fourth-quarter 2025 investor letter for its “The London Company Mid Cap Strategy”. A copy of the letter can be downloaded here. In Q4 2025, US equities posted the third consecutive quarter of higher returns, with the Russell 3000 Index rising 2.4%. The market highlighted how investors balanced the optimism on earnings growth and concerns regarding AI returns and cooling macroeconomic factors. In the quarter, the portfolio returned 3.2% (3.0% net) compared to a 0.2% increase in the Russell Midcap Index. Both stock selection and sector exposure contributed to the relative performance of the portfolio in the quarter. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, London Company Mid Cap Strategy highlighted stocks like Lamb Weston Holdings, Inc. (NYSE:LW). Lamb Weston Holdings, Inc. (NYSE:LW) is a leading producer and supplier of frozen potato products. On February 24, 2026, Lamb Weston Holdings, Inc. (NYSE:LW) stock closed at $47.96 per share. One-month return of Lamb Weston Holdings, Inc. (NYSE:LW) was 5.48%, and its shares are down 7.61% over the past twelve months. Lamb Weston Holdings, Inc. (NYSE:LW) has a market capitalization of $6.683 billion.

London Company Mid Cap Strategy stated the following regarding Lamb Weston Holdings, Inc. (NYSE:LW) in its fourth quarter 2025 investor letter:

"Lamb Weston Holdings, Inc. (NYSE:LW) – LW was a weaker name after reporting ongoing pricing pressure and industry headwinds, including softer QSR traffic. Management has executed on controllable operational issues but lingering issues have made a recovery more challenging. While these seem to be short-term headwinds, the long-term industry drivers remain attractive. We remain attracted to LW’s flexible balance sheet, leading market share, and capital allocation strategy."

Lamb Weston Holdings, Inc. (NYSE:LW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 51 hedge fund portfolios held Lamb Weston Holdings, Inc. (NYSE:LW) at the end of the third quarter, up from 47 in the previous quarter.   While we acknowledge the potential of Lamb Weston Holdings, Inc. (NYSE:LW) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Lamb Weston Holdings, Inc. (NYSE:LW) and shared Meridian Hedged Equity Fund's views on the company. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.