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

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Cal-Maine Foods (CALM - Free Report) closed at $46.96 in the latest trading session, marking a -0.28% move from the prior day. This change lagged the S&P 500's 0.24% gain on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 5.73%.

Coming into today, shares of the egg producer had lost 3.11% in the past month. In that same time, the Basic Materials sector lost 3.21%, while the S&P 500 gained 3.56%.

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 $3.21 per share. This would mark year-over-year growth of 42.67%.

Any recent changes to analyst estimates for Cal-Maine Foods should also be noted by investors. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Cal-Maine Foods is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, Cal-Maine Foods is currently trading at a Forward P/E ratio of 9.5. For comparison, its industry has an average Forward P/E of 10.67, which means Cal-Maine Foods is trading at a discount to the group.

It is also worth noting that CALM currently has a PEG ratio of 0.57. 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 0.57 at yesterday's closing price.

The Agriculture - Products industry is part of the Basic Materials sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% 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.

You can find more information on all of these metrics, and much more, on

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