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Higher Egg Prices, Lower Costs Drive Cal-Maine Foods Gains

By:
Lucas Downey
Published: Oct 9, 2024, 07:13 GMT+00:00

Cal-Maine Foods, Inc. (CALM) recently announced a 70% quarterly sales gain, sending shares considerably higher.

Nasdaq, FX Empire

In this article:

CALM is the largest egg producer and distributor in the U.S. The avian flu outbreak reduced the U.S. egg supply, causing egg prices to become a big inflation factor (the net average selling price for a dozen eggs rose to $2.39 from $1.59 a year prior). Also, decreased production costs due to lower feed ingredient prices are boosting the company’s business.

Financially, Cal-Maine Foods reported $150 million in net income for 2025’s first quarter compared to $9.26 million in the same quarter the year prior. CALM’s per-share earnings were $3.06. In the same quarter, the company had sales of $786 million, which crushed the prior year’s $489 million.

It’s no wonder CALM shares are up 51% this 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 Loves 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 had strong sales and earnings growth:

  • 3-year sales growth rate (+27.6%)
  • 3-year earnings growth rate (+2,249%)

Source: FactSet

Also, the company sports a profit margin of +11.9%.

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 years. 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 five years. The blue bars below show when CALM was a top pick…sending shares higher:

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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