U.S. markets closed
  • S&P 500

    4,185.47
    +15.05 (+0.36%)
     
  • Dow 30

    34,200.67
    +164.68 (+0.48%)
     
  • Nasdaq

    14,052.34
    +13.58 (+0.10%)
     
  • Russell 2000

    2,262.67
    +5.60 (+0.25%)
     
  • Crude Oil

    63.07
    -0.39 (-0.61%)
     
  • Gold

    1,777.30
    +10.50 (+0.59%)
     
  • Silver

    26.04
    +0.08 (+0.29%)
     
  • EUR/USD

    1.1980
    +0.0004 (+0.04%)
     
  • 10-Yr Bond

    1.5730
    +0.0430 (+2.81%)
     
  • GBP/USD

    1.3840
    +0.0056 (+0.41%)
     
  • USD/JPY

    108.7830
    +0.0670 (+0.06%)
     
  • BTC-USD

    60,615.05
    -1,159.49 (-1.88%)
     
  • CMC Crypto 200

    1,398.97
    +7.26 (+0.52%)
     
  • FTSE 100

    7,019.53
    +36.03 (+0.52%)
     
  • Nikkei 225

    29,683.37
    +40.68 (+0.14%)
     

What Do Analysts Recommend for Cal-Maine Foods?

Sue Miller

Cal-Maine Foods Posted Its 3Q16 Results, Stock Rose 8%

(Continued from Prior Part)

Analysts’ recommendations for Cal-Maine Foods

As of March 29, 2016, Cal-Maine Foods (CALM) was trading at $53.4. We’ll discuss what Wall Street analysts recommended for Cal-Maine Foods after the earnings release. Let’s see what the assigned price target for Cal-Maine Foods is over the next 12 months. The results show that analysts are consistent with the recommendations mentioned earlier. Most of the analysts, close to around 40%, rate the company a “hold.” Around 40% rate it a “buy” and 20% rate it a “sell.”

Analysts’ target prices for Cal-Maine Foods

The average broker target price for Cal-Maine Foods reduced to $55.5 from $56.75. This price is 4% higher than the closing price of $53.4 on March 29. The company’s peers such as Pilgrim’s Pride (PPC), Hormel Foods (HRL), and Hain Celestial (HAIN) have average broker target prices of $25, $43.38, and $47.14, respectively. These figures imply returns of 0.12%, -2.3%, -14.3%, respectively, over the next 12 months. The Guggenheim S&P Smallcap 600 Pure Growth ETF (RZG) invests 0.92% of its portfolio in Cal-Maine Foods.

Sidoti & Company and D.A. Davidson & Co. gave the stock a “strong buy” before the results. However, on March 29, they both downgraded from “buy” to “neutral” after the fiscal 3Q16 results.

Cal-Maine Foods is valued below its peers

Compared to its peers like Tyson Foods (TSN), Cal-Maine Foods is trading at a lower forward PE (price-to-earnings) ratio. Currently, it’s trading at 13.5x the next 12-month EPS (earnings per share) as of March 29. Tyson Foods is trading at 16.9x the next 12-month EPS. Pilgrim’s Pride (PPC) is trading at a slightly higher PE ratio of 12.06x compared to Cal-Maine Foods.

Continue to Next Part

Browse this series on Market Realist: