Trade-Ideas LLC identified

Cal-Maine Foods

(

CALM

) as a "perilous reversal" (up big yesterday but down big today) 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 $51.0 million.
  • CALM has traded 78,958 shares today.
  • CALM is down 3.5% today.
  • CALM was up 8.8% yesterday.

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More details on CALM:

Cal-Maine Foods, Inc. produces, grades, packages, markets, and distributes shell eggs. It offers specialty shell eggs, such as nutritionally enhanced, cage free, organic, and brown eggs under the Egg-Land's Best, Land O' Lake, Farmhouse, and 4-Grain brand names, as well as under private labels. The stock currently has a dividend yield of 5.8%. CALM has a PE ratio of 7. Currently there is 1 analyst that rates Cal-Maine Foods a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Cal-Maine Foods has been 810,200 shares per day over the past 30 days. Cal-Maine has a market cap of $2.4 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.02 and a short float of 53.9% with 17.83 days to cover. Shares are up 8.2% year-to-date as of the close of trading on Thursday.

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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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 8.3%. Since the same quarter one year prior, revenues rose by 44.2%. 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 0.03 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 2.36, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Food Products industry and the overall market, CAL-MAINE FOODS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • 40.78% is the gross profit margin for CAL-MAINE FOODS INC which we consider to be strong. It has increased significantly from the same period last year. Along with this, the net profit margin of 20.00% significantly outperformed against the industry average.

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