Cal-Maine Foods, the largest egg producer in the U.S. and No. 1 ranked company in the food group, saw its sales and profits climb this past year. Cal-Maine shares jumped nearly 14% to a record high on Wednesday after the company reported outstanding results on Tuesday. However, it gave a large part of that back Thursday.
The company's sales rose last year as egg prices soared amid the bird flu epidemic. The cost of eggs has come down as flocks start to recover, although they're still elevated from before the bird flu hit flocks in 2022. Cal-Maine continued to outperform even as prices fell.
Cal-Maine Stock Joins Elite Group
On Thursday, the Relative Strength (RS) Rating for Cal-Maine Foods jumped into a new percentile, with a rise from 79 to 89. The upgrade puts the food company's stock in an elite group of top-performers.
Market research reveals that the stocks that go on to make the biggest gains typically have an 80 or better RS Rating as they begin their biggest price moves. Cal-Maine now qualifies for that group.
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Among its other key ratings Cal-Maine has a best-possible 99 Earnings Per Share Rating and a 96 Composite Rating out of 99.
Ranging from 1 (worst) to 99 (best), the Composite Rating reveals how strongly a company is showing the seven telltale traits of winning stocks. The best growth stocks have a 90 or better Composite.
Additionally, Richland, Miss.-based Cal-Maine owns a B+ Accumulation/Distribution Rating. The B+ rating shows that institutional investors like mutual funds and ETFs are fairly eager buyers of its stock.
Cal-Maine Foods reported fiscal fourth quarter results Wednesday and its stock topped a 104.49 entry in a second-stage cup with handle. and closed at 119. 16. Thursday it fell more than 10%, giving back a large portion of Wednesday's gain, and traded around 106 just before the market closed. The buy range goes up to 109.71.
Profit Soared More Than 200% Last Quarter
On Tuesday, Cal-Maine Foods reported 203% earnings growth in the latest quarterly report, to $7.04 per share. Sales grew 72% to $1.1 billion.
Cal-Maine earns the No. 1 rank among its peers in the 15-stock Food-Meat Products industry group. Smithfield Foods and Pilgrim's Pride are also among the group's highest-rated stocks.
The exclusive Relative Strength Rating from Investor's Business Daily tracks market leadership with a 1 (worst) to 99 (best) score. The score shows how a stock's price performance over the last 52 weeks compares to all the other stocks in our database.
This article was created automatically with Stats Perform's Wordsmith software using data and article templates supplied by Investor's Business Daily. An IBD journalist may have edited the article.
Please follow James DeTar on Twitter @JimDeTar
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