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Cal-Maine Foods (CALM) Dips More Than Broader Markets: What You Should Know

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Cal-Maine Foods (CALM - Free Report) closed the most recent trading day at $52.97, moving -1.56% from the previous trading session. This move lagged the S&P 500's daily loss of 0.89%. Meanwhile, the Dow lost 0.63%, and the Nasdaq, a tech-heavy index, lost 0.25%.

Prior to today's trading, shares of the egg producer had lost 9.79% over the past month. This has lagged the Basic Materials sector's gain of 16.72% and the S&P 500's gain of 11.42% in that time.

Cal-Maine Foods will be looking to display strength as it nears 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%.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Cal-Maine Foods is currently trading at a Forward P/E ratio of 6.65. For comparison, its industry has an average Forward P/E of 6.98, 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 industry currently has a Zacks Industry Rank of 34, which puts it in the top 14% 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.

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


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