In the latest trading session, Cal-Maine Foods (CALM) closed at $47.73, marking a -0.89% move from the previous day. This change lagged the S&P 500's 0.63% loss on the day. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 0.15%.
Coming into today, shares of the egg producer had lost 10.57% in the past month. In that same time, the Basic Materials sector gained 2.96%, while the S&P 500 gained 0.89%.
Cal-Maine Foods will be looking to display strength as it nears its next earnings release. On that day, Cal-Maine Foods is projected to report earnings of $0.45 per share, which would represent year-over-year growth of 600%.
It is also important to note the 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Cal-Maine Foods is currently sporting a Zacks Rank of #1 (Strong Buy).
Investors should also note Cal-Maine Foods's current valuation metrics, including its Forward P/E ratio of 33.1. For comparison, its industry has an average Forward P/E of 12.72, which means Cal-Maine Foods is trading at a premium to the group.
The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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 Zacks.com.
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CalMaine Foods, Inc. (CALM) : Free Stock Analysis Report
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