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2 Stocks Making Big Moves After Hours Tuesday

By Dan Caplinger – Dec 28, 2021 at 8:12PM

Key Points

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The stock market finished mixed, but a couple of companies announced earnings late in the afternoon.

Wall Street wasn't able to keep up all the momentum from earlier in the week, although the Dow Jones Industrial Average (^DJI) continued to gain ground. The S&P 500 (^GSPC 0.56%) fell back ever so slightly from its record close on Monday, and the Nasdaq Composite (^IXIC) fell back as well.


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Data source: Yahoo! Finance.

Plenty of investors have essentially already called it quits until 2022 and aren't necessarily paying close attention to market-moving news. However, there are still some important factors moving stock prices. In after-hours trading  on Tuesday, some interesting news led to big moves for Calix (CALX 0.99%) and Cal-Maine Foods (CALM 1.11%).

A vote of confidence for Calix

Shares of Calix moved higher by 8% late Tuesday afternoon. The provider of cloud computing bandwidth services got an invitation that shareholders will be happy to see it accept.

Calix received word from S&P Dow Jones Indices that it will be added to the S&P MidCap 400 Index effective Jan. 4. The company will replace CIT Group (CIT), which has accepted an acquisition bid from First Citizens BancShares (FCNCA -1.10%) that is scheduled to close in the very near future.

The move comes after Calix has seen its stock price more than double over the past year. Increased demand from consumers to get better internet access has helped bolster Calix's business in managing bandwidth access for wireless telecommunications companies and similar internet providers. Gains in revenue have been solid, but even more important has been Calix's ability to boost its margins to improve its bottom line.

Getting added to an index doesn't by itself justify higher prices for a stock. Nevertheless, greater visibility should give Calix an opportunity to get in front of more investors' eyes, and that could help send the stock price still higher in 2022.

A storage facility full of eggs.

Image source: Getty Images.

Spoiling the end of the year

Moving the other way was Cal-Maine Foods, whose stock fell more than 7% in after-hours trading. Mixed  performance from the egg specialist disappointed investors.

Cal-Maine's numbers showed some of the challenges facing the food industry right now. Revenue was fairly strong, with sales climbing almost 12.5% in its fiscal second quarter compared to year-earlier results. However, net income plunged 90%, resulting in earnings of just $0.02 per share.

As with other elements contributing to food inflation, egg prices have been on the rise, and that has led to greater sales for the company. Sales volumes inched higher by 1%, reflecting greater demand from restaurants and other food service outlets as reopening efforts have continued. Exports to foreign markets also picked up. Cal-Maine saw particular strength in its specialty egg category, including cage-free and organic eggs.

Yet Cal-Maine will have to deal with higher costs of its own, and it'll be up to the company to figure out how much it can pass through to its own customers. Nervousness about Cal-Maine's pricing power likely played a role in the stock's decline, but investors will have to wait and see how the situation plays out in the new year.

CIT Group is an advertising partner of The Ascent, a Motley Fool company. Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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