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

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Cal-Maine Foods (CALM - Free Report) closed the most recent trading day at $59.66, moving +0.78% from the previous trading session. This change outpaced the S&P 500's 0.56% gain on the day. Meanwhile, the Dow gained 1.02%, and the Nasdaq, a tech-heavy index, lost 0.04%.

Coming into today, shares of the egg producer had gained 7.32% in the past month. In that same time, the Basic Materials sector gained 6.09%, while the S&P 500 gained 4.72%.

Investors will be hoping for strength from Cal-Maine Foods as it approaches its next earnings release. In that report, analysts expect Cal-Maine Foods to post earnings of $2.98 per share. This would mark year-over-year growth of 14800%.

It is also important to note the recent changes to analyst estimates for Cal-Maine Foods. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Cal-Maine Foods currently has a Zacks Rank of #1 (Strong Buy).

Looking at its valuation, Cal-Maine Foods is holding a Forward P/E ratio of 7.31. For comparison, its industry has an average Forward P/E of 7.37, which means Cal-Maine Foods is trading at a discount to the group.

The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 42, putting it in the top 17% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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