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Cal-Maine Foods (CALM) Gains As Market Dips: What You Should Know

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Cal-Maine Foods (CALM - Free Report) closed the most recent trading day at $47.28, moving +0.83% from the previous trading session. This change outpaced the S&P 500's 0.22% loss on the day. Elsewhere, the Dow lost 0.31%, while the tech-heavy Nasdaq lost 0.23%.

Heading into today, shares of the egg producer had lost 2.52% over the past month, lagging the Basic Materials sector's gain of 3.52% and the S&P 500's gain of 2.08% in that time.

Cal-Maine Foods will be looking to display strength as it nears its next earnings release. On that day, Cal-Maine Foods is projected to report earnings of -$0.01 per share, which would represent a year-over-year decline of 100.39%.

Any recent changes to analyst estimates for Cal-Maine Foods should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Cal-Maine Foods is holding a Zacks Rank of #5 (Strong Sell) right now.

Valuation is also important, so investors should note that Cal-Maine Foods has a Forward P/E ratio of 15.84 right now. For comparison, its industry has an average Forward P/E of 16.04, which means Cal-Maine Foods is trading at a discount to the group.

Meanwhile, CALM's PEG ratio is currently 0.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Agriculture - Products was holding an average PEG ratio of 0.95 at yesterday's closing price.

The Agriculture - Products industry is part of the Basic Materials sector. This group has a Zacks Industry Rank of 78, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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