Back to top

Image: Bigstock

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

Read MoreHide Full Article

Cal-Maine Foods (CALM - Free Report) closed at $48.73 in the latest trading session, marking a -1.75% move from the prior day. This move lagged the S&P 500's daily gain of 0.67%. Elsewhere, the Dow gained 0.25%, while the tech-heavy Nasdaq added 1.14%.

Heading into today, shares of the egg producer had gained 6.69% over the past month, outpacing the Basic Materials sector's loss of 2.48% and the S&P 500's loss of 0.73% in that time.

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 -$0.01 per share. This would mark a year-over-year decline of 100.39%.

Investors should also note any 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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 remained stagnant. Cal-Maine Foods currently has a Zacks Rank of #5 (Strong Sell).

Investors should also note Cal-Maine Foods's current valuation metrics, including its Forward P/E ratio of 16.76. This represents a discount compared to its industry's average Forward P/E of 17.06.

Investors should also note that CALM has a PEG ratio of 1.01 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Agriculture - Products industry currently had an average PEG ratio of 1.01 as of yesterday's close.

The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 106, putting it in the top 43% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Cal-Maine Foods, Inc. (CALM) - free report >>

Published in