After reaching an important support level, Cal-Maine Foods (CALM) could be a good stock pick from a technical perspective. CALM surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.
Cal-Maine Foods (CALM 2.80%), the nation's largest egg producer, missed on earnings but announced an agreement to acquire breakfast food manufacturer Echo Lake Foods. Investors weren't sure what to make of it all.
Cal-Maine Food's solid third-quarter fiscal 2025 results reflect the impacts of the higher net average selling price of eggs and robust seasonal demand.
The egg price increases have put Cal-Maine, which provides around 20% of the nation's eggs, under increased scrutiny. On Tuesday, Cal-Maine said its quarterly sales nearly doubled to $1.42 billion.
Cal-Maine said revenue doubled to $1.42 billion in its fiscal third quarter. The revenue increase was driven by the net average selling price , which jumped to $4.06 a dozen compared with $2.25 a year ago, the company said.
Consumers have been hoping eggs prices crack as costs have soared. One company, Cal-Maine Foods (CALM), is an egg producer that captured investor interest.
Cal-Maine is the leading U.S. egg producer with a vertically integrated approach. The egg market is seeing a shift towards cage-free production. Cal-Maine is taking steps to adapt to this new demand. After falling 22% in the last month, the company is trading at a dividend yield of 7%. I think it is cheap for a market leader.
CalMaine Foods, Inc. CALM shares are trading at a premium to the Zacks Agriculture Products industry. CALM is currently trading at a forward 12-month earnings multiple of 12.21X compared with the industry's 11.33X.
Cal-Maine Foods (CALM 1.53%) stock flew more than 7% higher in early trading Wednesday before settling back to roost on a 2.7% gain as of 10:55 a.m. ET. America's largest producer of eggs in the shell, Cal-Maine appears to be reacting to bombshell news from the Trump administration:
This egg producer has soaring earnings.
Cal-Maine Foods has surged along with egg prices. But the stock's valuation is now hard to digest.
Cal-Maine Foods leveraged the avian flu crisis to “raise prices, amass record profits and consolidate market power,” Farm Action alleged in a letter to the DOJ and FTC.