Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, egg producer Cal-Maine Foods (NASDAQ: CALM ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Cal-Maine, and see what CAPS investors are saying about the stock right now.
Cal-Maine facts
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Headquarters (founded)
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Jackson, Miss. (1969)
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Market Cap
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$991.0 million
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Industry
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Packaged foods
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Trailing-12-Month Revenue
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$1.2 billion
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Management
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Chairman/CEO Adolphus Baker
CFO Timothy Dawson
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Return on Equity (average, past 3 years)
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18.3%
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Cash/Debt
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$163.1 million / $70.5 million
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Competitors
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Michael Foods Group
Moark
Rose Acre Farms
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Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 767 members who have rated Cal-Maine believe the stock will outperform the S&P 500 going forward.
Just yesterday, one of those Fools, drewvogel, tapped the stock as a tasty long-term opportunity:
Since corn is a major input cost for [Cal-Maine] and we lack commensurate supply/demand mismatch for wholesale eggs, [Cal-Maine] profitability will suffer until at least Q3 2013 (calendar). The stock price will likely suffer with it, providing healthy buying opportunities. Meanwhile, [Cal-Maine] can continue to use its strong balance sheet to pursue its acquisition strategy. When feed costs revert to their normal cycle and/or wholesale egg prices rise due to consolidation, [Cal-Maine] will reap an increasing proportion of the upside.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Cal-Maine may not be your top choice.
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