Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified

Cal-Maine Foods

(

CALM

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Cal-Maine Foods as such a stock due to the following factors:

  • CALM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $8.9 million.
  • CALM has traded 8,717 shares today.
  • CALM is trading at a new lifetime high.

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More details on CALM:

Cal-Maine Foods, Inc. engages in producing, grading, packaging, marketing, and distributing shell eggs. The stock currently has a dividend yield of 3%. CALM has a PE ratio of 25.4.

The average volume for Cal-Maine Foods has been 125,500 shares per day over the past 30 days. Cal-Maine has a market cap of $1.7 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.00 and a short float of 5.8% with 5.12 days to cover. Shares are up 30.8% year-to-date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Cal-Maine Foods as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:

  • CALM's revenue growth has slightly outpaced the industry average of 3.0%. Since the same quarter one year prior, revenues slightly increased by 9.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CALM's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, CALM has a quick ratio of 2.24, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 39.37% and other important driving factors, this stock has surged by 56.41% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CALM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 40.3% when compared to the same quarter one year prior, rising from $30.55 million to $42.85 million.
  • Net operating cash flow has significantly increased by 81.36% to $61.39 million when compared to the same quarter last year. In addition, CAL-MAINE FOODS INC has also vastly surpassed the industry average cash flow growth rate of -15.42%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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