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Cal-Maine Foods (CALM) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Cal-Maine Foods (CALM - Free Report) closed at $55.27, marking a +0.97% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.45%, and the tech-heavy Nasdaq lost 0.82%.

Prior to today's trading, shares of the egg producer had gained 3.22% over the past month. This has lagged the Basic Materials sector's gain of 12.7% and the S&P 500's gain of 12.15% in that time.

Investors will be hoping for strength from Cal-Maine Foods as it approaches its next earnings release. On that day, Cal-Maine Foods is projected to report earnings of $1.98 per share, which would represent year-over-year growth of 635.14%.

Any recent changes to analyst estimates for Cal-Maine Foods should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 251.59% higher. Cal-Maine Foods is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note Cal-Maine Foods's current valuation metrics, including its Forward P/E ratio of 12.36. For comparison, its industry has an average Forward P/E of 10.09, which means Cal-Maine Foods is trading at a premium to the group.

The Agriculture - Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CALM in the coming trading sessions, be sure to utilize Zacks.com.


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