Validea Benjamin Graham Strategy Daily Upgrade Report - 4/18/2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 01 2025
0mins
Source: NASDAQ.COM
Validea's Value Investor Model: The model, based on Benjamin Graham's strategy, has upgraded Cal-Maine Foods Inc. (CALM) from an 86% to a perfect 100% rating due to its strong fundamentals and valuation metrics, indicating significant interest in the stock.
Company Overview: Cal-Maine Foods is a leading producer of various types of shell eggs, including organic and cage-free options, with integrated operations that cover all aspects from hatching chicks to marketing and distribution.
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Analyst Views on CALM
Wall Street analysts forecast CALM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CALM is 90.00 USD with a low forecast of 85.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 81.400
Low
85.00
Averages
90.00
High
100.00
Current: 81.400
Low
85.00
Averages
90.00
High
100.00
About CALM
Cal-Maine Foods, Inc. is primarily engaged in the production, packaging, marketing and distribution of fresh shell eggs, including conventional, cage-free, organic, brown, free-range, pasture-raised and nutritionally enhanced eggs, as well as a variety of ready-to-eat egg products. The Company’s integrated operations consist of hatching chicks, growing and maintaining flocks of pullets, layers and breeders, manufacturing feed, and producing, processing, packaging, and distributing shell eggs. The Company provides specialty and conventional eggs. Specialty eggs encompass a broad range of products, such as cage-free, organic, brown, free-range, pasture-raised and nutritionally enhanced eggs. Its Farmhouse Eggs brand eggs are produced at its facilities by hens that are provided with a vegetarian diet. It markets organic, vegetarian and omega-3 eggs under its 4-Grain brand, which consists of conventional and cage-free eggs. Its Sunups and Sunny Meadow brands are sold as conventional eggs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Cal-Maine Foods Faces Challenges as Egg Prices Plunge 20.9% Year-Over-Year
- Egg Price Collapse: In December, U.S. egg prices fell 20.9% year-over-year and 8.2% month-over-month due to last year's supply shock from avian influenza, directly impacting Cal-Maine Foods' sales.
- Import Support: The U.S. has imported eggs from Brazil, Mexico, Turkey, and South Korea to alleviate domestic supply shortages, highlighting the urgent need for stable supply in the market.
- Market Share: As the largest producer and distributor of fresh shell eggs in the U.S., Cal-Maine Foods is estimated to sell over 15% of all eggs consumed, with its vertically integrated business model providing some resilience amid market fluctuations.
- Diversification Strategy: Cal-Maine Foods aims for a 30% growth in prepared foods over the next 18 to 24 months, intending to mitigate the impact of the egg price collapse through product diversification and enhance its competitive position in the market.
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