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

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In the latest trading session, Cal-Maine Foods (CALM - Free Report) closed at $49.60, marking a +0.38% move from the previous day. This change lagged the S&P 500's 0.93% gain on the day. At the same time, the Dow added 0.56%, and the tech-heavy Nasdaq gained 1.71%.

Heading into today, shares of the egg producer had gained 5.02% over the past month, outpacing the Basic Materials sector's loss of 1.54% and the S&P 500's gain of 4.61% in that time.

Cal-Maine Foods will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $3.21, up 42.67% from the prior-year quarter.

Investors should also note any recent changes to analyst estimates for Cal-Maine Foods. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cal-Maine Foods is currently a Zacks Rank #4 (Sell).

In terms of valuation, Cal-Maine Foods is currently trading at a Forward P/E ratio of 9.97. For comparison, its industry has an average Forward P/E of 12.62, which means Cal-Maine Foods is trading at a discount to the group.

Investors should also note that CALM has a PEG ratio of 0.6 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 0.6 as of yesterday's close.

The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 234, putting it in the bottom 8% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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