S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
A One Stop Shop for Everything Futures Trading (Ad)pixel
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
A One Stop Shop for Everything Futures Trading (Ad)pixel
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia blindfolds, detains Ukraine nuclear plant chief
NIH to fund unproven ALS drugs under patient-backed law
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
A One Stop Shop for Everything Futures Trading (Ad)pixel
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
A One Stop Shop for Everything Futures Trading (Ad)pixel
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia blindfolds, detains Ukraine nuclear plant chief
NIH to fund unproven ALS drugs under patient-backed law
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
A One Stop Shop for Everything Futures Trading (Ad)pixel
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
A One Stop Shop for Everything Futures Trading (Ad)pixel
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia blindfolds, detains Ukraine nuclear plant chief
NIH to fund unproven ALS drugs under patient-backed law
S&P 500   3,585.62
DOW   28,725.51
QQQ   267.26
Want to Increase Your Conversion Rates? This Is the Biggest Threat to Your Success.
A One Stop Shop for Everything Futures Trading (Ad)pixel
Russia accused of 'kidnapping' head of Ukraine nuclear plant
EU chief: New Greece-Bulgaria gas pipeline 'means freedom'
A One Stop Shop for Everything Futures Trading (Ad)pixel
Danish Energy Agency says Nord Stream 2 gas pipeline under Baltic Sea appears to have stopped leaking gas
UK train strikes and energy hikes add to a week of turmoil
In 20 years, this little-known trader didn’t have a single losing year… (Ad)
Russia blindfolds, detains Ukraine nuclear plant chief
NIH to fund unproven ALS drugs under patient-backed law

Cal-Maine Foods Is On The Upswing, Finally 

Cal-Maine Foods Is On The Upswing, Finally 

We Wrote Off Cal-Maine Foods Too Soon 

Cal-Maine (NASDAQ: CALM) Foods struggled with profitability last year leading us to write the stock off at the end of 2021. That was a mistake because right about the time we were cutting the stock loose from our coverage sphere the egg-market fundamentals took a surprising turn for the better. Flock sizes and egg production combined with demand trends to drive eggs prices higher and now we’ve got a company that is not only producing positive cash flow but enough to offset prior losses and allow the board to declare a dividend. We can’t be sure the dividend will stick around long due to the strict payment policy but it does look like the company will be paying it for the next few quarters at least. 

Cal-Maine Moves Up On Fundamental Shift 

Cal-Maine had a great quarter supported by both volume and pricing. Volume improved by 2.8% while pricing added another 29.4% to drive a 33% increase in YOY revenue. This is 185 basis points better than the Marketbeat.com consensus and is only one reason why shares are moving higher. The strength was driven by an increase in specialty eggs as well as a return to more normalized business on the food service end of the operation. 

Moving down to the income, the company reported a 600 basis point improvement in gross margin driven by the strong pricing environment. This led to GAAP earnings of $0.81 per share or more than double what the company made last year. The EPS missed the consensus by $0.02 but the miss is easy to overlook in light of the dividend. Cal-Maine hasn’t paid any dividends since May 2021 and the last before that was May of 2019 so there are some investors who’ve been waiting quite a long time. The new payout is $0.125 per share which is good for a yield of 0.90% and the stock goes ex-dividend on April 26th. 


Cal-Maine did not give any formal guidance but the industry update is favorable for both pricing and demand. The USDA says flock sizes are down 1.6% from last year not including any new impacts from the HPAI avian flu. The flock size is below the 5-year average as well and the hatch numbers don’t point to a bigger flock. The hatch was down -5.5% with pullets down by -7% and likely to move lower before the end of the HPAI outbreak. The outbreak is, at this time, still small and well contained and not a threat to Cal-Maine. Meanwhile, Cal-Maine is allocating more than $80 million to expand its specialty egg production, a key driver of its organic growth. 

An Analyst Is Excited About Cal-Maine 

At least one analyst at Consumer Edge is excited about Cal-Maine’s Q3 report. They upped their rating on the stock to Overweight from Equal Weight with a price target of $60. That’s about 10% above the recent price action and maybe a conservative target if market fundamentals skew more into Cal-Maine’s favor. As for the rest of the community, there are only 2 total ratings less than 1-year old and the other is about 1-year old so doesn’t carry much weight. 

The Technical Outlook: Cal-Maine Flies To New Heights 

Shares of Cal-Maine popped more than 5% in the wake of the Q3 results and may move higher. The post-release action confirmed the strengthening uptrend and puts a price target of $62.50 into play. The indicators are also bullish and support the move but there is a caveat. If the market doesn’t follow through on the signal this rally could already be dead in the water. There is some resistance at the $56 level that could keep the stock from moving much higher. 

Cal-Maine Foods Is On The Upswing, Finally 

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Cal-Maine Foods (CALM)
1.964 of 5 stars
$55.59-5.2%5.40%9.84Buy$58.50
Compare These Stocks  Add These Stocks to My Watchlist 

Should you invest $1,000 in Cal-Maine Foods right now?

Before you consider Cal-Maine Foods, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Cal-Maine Foods wasn't on the list.

While Cal-Maine Foods currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Thomas Hughes

About Thomas Hughes

Contributing Author: Technical and Fundamental Analysis

Thomas got his start with the markets while working as a Chef. In 2005 a chance invitation to attend the seminar “How To Buy And Sell Your Own Stocks” altered his worldview. Soon trading and stocks consumed his every waking moment to the point of excluding all else. Thomas now enjoys a much different lifestyle engaged in his true passion, uncovering great investments.
Contact Thomas Hughes via email at tmhughes.writeon@gmail.com.
Free Email Newsletter

Complete the form below to receive the latest headlines and analysts' recommendations for your stocks with our free daily email newsletter:

Most Read This Week

Recent Articles

Search Headlines:

Latest PodcastFed Raises Rates: 3 Stocks to Watch Newmont Mining, Walmart, AMC

Axel Merk, President and CIO of Merk Investments has three very different stocks he frames within the current market and economic conditions.

MarketBeat Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau MarketBeat is rated as Great on TrustPilot

© American Consumer News, LLC dba MarketBeat® 2010-2022. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | contact@marketbeat.com | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Privacy Policy | Do Not Sell My Information | RSS Feeds

© 2022 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer.