Why Cal-Maine's Long-Term Looks Scrumptious

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

 

 

Headquarters (founded)

Jackson, Miss. (1969)

Market Cap

$991.0 million

Industry

Packaged foods

Trailing-12-Month Revenue

$1.2 billion

Management

Chairman/CEO Adolphus Baker

CFO Timothy Dawson

Return on Equity (average, past 3 years)

18.3%

Cash/Debt

$163.1 million / $70.5 million

Competitors

Michael Foods Group

Moark

Rose Acre Farms

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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Read/Post Comments (1) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 13, 2013, at 12:04 AM, TadpolesUS wrote:

    As an existing holder of CALM for the past few years, I'm very happy with their performance to date. Looking for a dip, so I can buy more.

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