Quick…

Name the one sector that’s beating inflation…

And sidestepping the recession…

All while growing sales. Any ideas?

Here’s a hint…

It’s the one segment of the market that consumers refuse to give up – even in times when they’re scaling back their monthly expenditures.

Give up?

Okay, I’ll tell you…

Potatoes.

Yes, potatoes.

That’s why today’s article is about Lamb Weston (LW).

You see, LW is a global provider of french fries.

LW sells them both to grocery stores and to major restaurant chains like McDonald’s.

And as it turns out, fries have proven to be a winning commodity no matter what the economic climate happens to be.

For instance, last quarter, LW hit a record $1.3 billion in sales and raised its annual forecast.

So even with dining out declining, LW says its “fry-attachment rate” is still above pre-pandemic levels.

Whether we’re talking about classic or extra crispy or waffle or sweet potato or shoestring or crinkle-cut or curly or steak or skillet or hash brown fries, LW has a total of 129 products that are not impacted by economic conditions.

In short, no matter what happens to the economy, consumers will not give up their fries – making LW a possible winner in any market environment.

And when it comes to fries – and I mean GOOD FRIES – nobody beats LW.

Case in point…

Chef Ari Kolender recently told Food & Wine magazine that Lamb Weston’s supreme 1/4-inch shoestrings fries are “the Rolls-Royce of fries.”

YOUR ACTION PLAN

Bank of America just included Lamb Weston in its recent list of short-term stock picks for the second quarter, and I agree. The company reported tremendous earnings last week, which could help it continue on its upward trajectory for the foreseeable future. I’ll be looking to reload on calls this week.

If you want more trade ideas like this, I highly recommend joining Karim and me in The War Room. We’ve maintained a 76% win rate in 2023 despite recession worries and the recent bank fiasco. Right now, we’re guaranteeing members will receive 252 winning trades in their first 12 months.

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MONDAY MARKET MINUTE

• Jobs Still Going Strong. While the markets were closed last Friday, the Labor Department announced that the monthly jobs report – which showed that 236,000 nonfarm jobs were added in March – was roughly in line with the Dow Jones estimate of 238,000 jobs. While this isn’t enough to move the needle (meaning the Fed will most likely raise rates another quarter-point and then pause hikes), it is a nice indication of the economy’s resilience. Tracking.
• Potential Dip Buy on Caterpillar. Shares of Caterpillar moved down nearly $20 last week – which put it right below its 200-day moving average. Was this an overcorrection? We’ll be keeping an eye on this one.
• American Water Works Company on the Rise. This is a possible safe haven play. An extension of the “W” pattern on its daily chart could send shares up to $160. This could be a call play to enter.
• Tupperware Brands Drops in Premarket. Tupperware is down 42% after engaging financial advisors to help it improve its capital structure and remediate its doubts regarding its ability to continue as a going concern.