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Cal-Maine Foods (CALM) Gains But Lags Market: What You Should Know

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Cal-Maine Foods (CALM - Free Report) closed the most recent trading day at $62.58, moving +0.63% from the previous trading session. This move lagged the S&P 500's daily gain of 1.49%. Elsewhere, the Dow gained 1.6%, while the tech-heavy Nasdaq added 0.06%.

Prior to today's trading, shares of the egg producer had gained 9.14% over the past month. This has outpaced the Basic Materials sector's gain of 0.7% and the S&P 500's loss of 3.49% in that time.

Wall Street will be looking for positivity from Cal-Maine Foods as it approaches its next earnings report date. This is expected to be December 28, 2022. On that day, Cal-Maine Foods is projected to report earnings of $4.30 per share, which would represent year-over-year growth of 21400%.

It is also important to note the recent changes to analyst estimates for Cal-Maine Foods. 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.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 8.15% higher. Cal-Maine Foods currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, Cal-Maine Foods currently has a Forward P/E ratio of 7.1. This represents a premium compared to its industry's average Forward P/E of 7.03.

We can also see that CALM currently has a PEG ratio of 0.35. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Agriculture - Products was holding an average PEG ratio of 0.35 at yesterday's closing price.

The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 68, putting it in the top 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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