NEW YORK (TheStreet) -- Whether scrambled, boiled, poached, deviled or as an omelet, eggs have been a breakfast staple for .... let's just say, a long time. And good luck baking a decent cake without them.

Although Cal-Maine Foods (CALM) - Get Reportthe largest egg producer and marketer in the U.S., has underperformed this year, the company is poised to benefit from growing demand for specialty eggs.

Coupled with better pricing and lower feed costs, its shares, which are down 10.5% in the past six months, should rebound as Cal-Maine's profits improve. So ahead of the company's fiscal 2015 third-quarter earnings results Monday, Cal-Maine is a name to keep an eye on in the packaged food sector as a potential turnaround candidate.

Given that Cal-Maine shares are still 35% higher than they were a year ago, describing it as a "turnaround candidate" may seem a bit off. But at around $38 per share, not only has Cal-Maine lost more than 10% of its value in the past six months, its shares have posted a 21% decline since hitting their 52-week high of $48.31 last October. And its tough to ignore how undervalued Cal-Maine shares have become.

With a P/E ratio of 13 times trailing earnings, the Cal-Maine stock is trading at a major discount to the S&P 500 (SPX) , which has an average P/E ratio of 21, according toCNN Money. And this is even though Cal-Maine, with an operating margin of 13% and a gross margin of 24%, exceeds its peer group in both categories, according toYahoo! Finance. This means the Jackson, Miss.-based company is doing the right things to boost its profits.

Accordingly, analysts are positive about Cal-Maine's long-term prospects. Its average 12-month price target of $44.25 is 16% above current levels. Should it hit it's high target of $51, it would deliver gains of more than 34%. Conversely, in terms of risk, its lowest target is $37.50, a mere 1.3% below current levels.

Moreover, analysts polled by Yahoo! Financehave raised earnings estimates for the quarter ending in May by more than 4% in the past three months, from 70 cents per share to 73 cents per share. Beyond that, full-year 2015 earnings projections been raised 1.3% to $3.10 per share, and estimates for 2016 are now almost 3% higher at $2.89 per share.

Why the confidence? Obviously, America loves eggs. But not only has Cal-Maine shown it can make money from the eggs it sells, the company is having a hard time keeping up with demand. And that's a problem businesses love to have.

In the second quarter, for instance, revenue climbed 7% to $378.6 million. But here's the thing: Production volume was up only 4.2% from the year before. This means Cal-Maine is growing revenue at a faster rate than production. And even with the company's prices up 2.9%, Cal-Maine still managed to sell more than 260 million dozen eggs, up more than 4% from the previous year.

Its specialty eggs, sold under brands including Egglands Best and Land O Lakes, account for 27% of total revenue, and are driving Cal-Maine's sales higher. And with analysts raising their estimates -- an implicit statement that they believe that these trends will continue -- Cal-Maine appears to be a good stock to hold for the long term.

This article is commentary by an independent contributor. At the time of publication, the author held no position in the stocks mentioned.