Back to top

Image: Bigstock

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

Read MoreHide Full Article

Cal-Maine Foods (CALM - Free Report) closed the most recent trading day at $57.04, moving +0.42% from the previous trading session. This change outpaced the S&P 500's 0.47% loss on the day. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq lost 15.51%.

Prior to today's trading, shares of the egg producer had lost 0.73% over the past month. This has was narrower than the Basic Materials sector's loss of 5.8% and the S&P 500's loss of 2.53% in that time.

Investors will be hoping for strength from Cal-Maine Foods as it approaches its next earnings release. On that day, Cal-Maine Foods is projected to report earnings of $4.30 per share, which would represent year-over-year growth of 430.86%.

Investors might also notice recent changes to analyst estimates for Cal-Maine Foods. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

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 has moved 18.96% higher 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 3.39. This represents a discount compared to its industry's average Forward P/E of 11.17.

We can also see that CALM currently has a PEG ratio of 0.16. 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 industry currently had an average PEG ratio of 0.16 as of yesterday's close.

The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 171, putting it in the bottom 33% 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.

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

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