Back to top

Image: Bigstock

Here's Why Cal-Maine Foods (CALM) Fell More Than Broader Market

Read MoreHide Full Article

Cal-Maine Foods (CALM - Free Report) closed the most recent trading day at $47.12, moving -1.67% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.2%. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.07%.

The the stock of egg producer has risen by 5.18% in the past month, lagging the Basic Materials sector's gain of 7.33% and the S&P 500's gain of 7.49%.

The upcoming earnings release of Cal-Maine Foods will be of great interest to investors.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cal-Maine Foods. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 12.24% downward. Currently, Cal-Maine Foods is carrying a Zacks Rank of #3 (Hold).

Investors should also note Cal-Maine Foods's current valuation metrics, including its Forward P/E ratio of 23.04. For comparison, its industry has an average Forward P/E of 15.6, which means Cal-Maine Foods is trading at a premium to the group.

It is also worth noting that CALM currently has a PEG ratio of 1.38. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Agriculture - Products industry had an average PEG ratio of 1.38.

The Agriculture - Products industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 55, this industry ranks in the top 22% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use to keep track of all these stock-moving metrics, and others, in the upcoming 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