New Lifetime High For Cal-Maine Foods (CALM)

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 $15.2 million.
  • CALM has traded 5,422 shares today.
  • CALM is trading at a new lifetime high.

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More details on CALM:

Cal-Maine Foods, Inc. produces, grades, packages, markets, and distributes shell eggs. The stock currently has a dividend yield of 2.1%. CALM has a PE ratio of 18.0.

The average volume for Cal-Maine Foods has been 140,500 shares per day over the past 30 days. Cal-Maine has a market cap of $1.8 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 1.14 and a short float of 5.8% with 2.29 days to cover. Shares are up 35.3% 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, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.1%. Since the same quarter one year prior, revenues rose by 14.0%. 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 0.10 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 2.45, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 912.50% and other important driving factors, this stock has surged by 74.66% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • CAL-MAINE FOODS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, CAL-MAINE FOODS INC increased its bottom line by earning $4.51 versus $2.10 in the prior year. This year, the market expects an improvement in earnings ($5.93 versus $4.51).
  • 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 921.6% when compared to the same quarter one year prior, rising from -$3.83 million to $31.49 million.

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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