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Cal-Maine Foods Rises on Higher Prices, Demand

By:
Lucas Downey
Published: Jan 23, 2025, 13:08 GMT+00:00

Shares of food company Cal-Maine Foods, Inc. (CALM) are up as prices, consumer demand increase.

Wall Street, FX Empire

In this article:

CALM is the biggest shell egg producer and distributor in the U.S. Another avian flu outbreak reduced the egg supply, making prices rise again. Although the virus cannot survive in properly cooked eggs, it has still had a big effect on CALM’s business. In terms of growth, last year the company announced capital spending projects aimed to grow cage-free production. Recent corporate acquisitions have boosted CALM’s overall prospects too.

Financially, Cal-Maine Foods reported $219.1 million in net income for fiscal 2025’s second quarter. The company recorded record sales of total dozens and specialty dozens, along with paying a dividend of $1.49 per share. CALM’s quarterly sales were $954.7 million, which is a big rise over the previous year.

It’s no wonder CALM shares are up over 103% in a year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Buying Cal-Maine Foods

Institutional volumes reveal plenty. Recently, CALM has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in CALM shares. They reflect our proprietary inflow signal, pushing the stock higher:

Source: www.mapsignals.com

Plenty of staples names are under accumulation right now. But there’s a powerful fundamental story happening with Cal-Maine Foods.

Cal-Maine Foods Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, CALM has grown sales and earnings:

  • 3-year sales growth rate (+2.3%)
  • 1-year earnings growth rate (+11.9%)

Source: FactSet

Also, the company sports a profit margin of +24%.

Now it makes sense why the stock has been powering to new heights. CALM has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

Cal-Maine Foods has been a top-rated stock at MAPsignals for a while. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when CALM was a top pick…sending shares up:

Source: www.mapsignals.com

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

Cal-Maine Foods Price Prediction

The CALM rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in CALM at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.

About the Author

Lucas Downeycontributor

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

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