This page is temporarily not available. Please check later as it should be available shortly. If you have any questions, please email customer support at email@example.com or call 800-767-3771 ext. 9339.
has an attractive valuation and is looking to stretch its positive
earnings surprise streak to three. The stock is a Zacks #1 Rank
Cal-Maine Foods, Inc. is engaged in the production, cleaning,
grading, and packaging of fresh shell eggs for sale to shell egg
retailers. The company is the one of the largest producers and
distributors of fresh shell eggs in the United States. The company
markets its eggs primarily in the southwestern, southeastern,
mid-western and mid-Atlantic regions of the United States.
Feast or Famine for Earnings
Analysts have not had any free lunches courtesy of CALM, as
they have seen estimates range from a loss of six cents in the
August 2010 quarter to as high as $1.02 in EPS in the February
2011 quarter. Of the last six quarters, the company has racked up
four beats and two misses and all reports are double digit
The two misses, occurring in February 2011 and May 2011, were 12%
and 31% negative surprises. The beats are just as large, if not
larger. The August 2010 quarter was 250% ahead of expectations and
the average of the three other beats was 27%.
Stock Moves On Earnings
Common sense would tell you that these large beats and or misses
would result in big moves for the stock. That logic would be
wrong. Only one time did the stock move by more than 7%, and it
was as a result of the 250% beat and the stock went down
following that positive report.
Most Recent Beat
The company reported is November 2011 quarter late in December
and posted revenue of $290 million, up from $235 million in the
year ago period. Earnings per share of $0.97 were 40% ahead of
the Zacks Consensus Estimate and up from $0.63 in the same quarter
last year. The company is expected to post revenue of $309
million and EPS of $1.14 for the February 2012 quarter later this
The reasonable multiples that CALM carries are slightly above the
industry average for most metrics. At 15x trailing earnings, CALM
trades at a premium to the industry average of 11.7x. Similarly
the stock carries a 13x multiple versus a 10x industry average
multiple for forward earnings. Price to book is in line with the
industry and price to sales for CALM again shows a very slight
A look at the shows us just what an aggressive growth stock
investor is looking for. The steady upward trend that the stock
has exhibited since October is due to rising earnings and two back
to back positive earnings surprises. Should the surprise streak
growth to three, then this stock is primed for a big move due to
its low valuation.
Brian Bolan is an Aggressive Growth Stock Strategist
This Week's Aggressive Growth Zacks Rank Buy
Voxx (PEBO) has seen
limited analyst coverage in the past, but a recent strong beat has
helped make the stock a Zacks #1 Rank (Strong Buy).
Select Medical Holdings (SEM) posts four
straight positive earnings surprises, sees estimates for 2012 move
higher making it a Zacks #1 Rank (Strong Buy).
Generac (GNRC) is a Zacks #1
Rank (Strong Buy) due to its solid history of positive earnings
surprises. Its recent pull back makes it attractive to aggressive
Kirby Corp (KEX) has a strong
history of positive earnings surprises and carries an attractive
valuation. The stock is now a Zacks #1 Rank (Strong Buy).