Why the Market Dipped But Cal-Maine Foods (CALM) Gained Today
Cal-Maine Foods (CALM) closed at $49.52 in the latest trading session, marking a +0.53% move from the prior day. This move outpaced the S&P 500's daily loss of 0.54%. Meanwhile, the Dow experienced a drop of 0.11%, and the technology-dominated Nasdaq saw a decrease of 0.84%.
Shares of the egg producer have depreciated by 0.57% over the course of the past month, underperforming the Basic Materials sector's gain of 9.48% and the S&P 500's gain of 8.62%.
The investment community will be paying close attention to the earnings performance of Cal-Maine Foods in its upcoming release.
Investors should also pay attention to any latest changes in analyst estimates for Cal-Maine Foods. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Cal-Maine Foods is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, Cal-Maine Foods is currently exchanging hands at a Forward P/E ratio of 23.68. This denotes a premium relative to the industry's average Forward P/E of 15.49.
Meanwhile, CALM's PEG ratio is currently 1.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Agriculture - Products industry had an average PEG ratio of 1.42.
The Agriculture - Products industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 93, placing it within the top 37% of over 250 industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Cal-Maine Foods, Inc. (CALM) : Free Stock Analysis Report
