Based on the aggregated intelligence of 115,000-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. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Cal-Maine's business and see what CAPS investors are saying about the stock right now.

Cal-Maine facts


Jackson, Miss. (1969)

Market Cap

$578.6 million


Farm Products

TTM Revenue

$944.2 million


CEO Fred Adams Jr. (since 1969)

CFO Timothy Dawson (since 2005)

Return on Capital (average last three years)



Michael Foods,

Rose Acre Farms

CAPS members bullish on CALM also bullish on


PotashCorp (NYSE:POT),


CAPS members bearish on CALM also bearish on

Vimpel-Communications (NYSE:VIP),

JPMorgan Chase (NYSE:JPM),

Buffalo Wild Wings (NASDAQ:BWLD)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 107 of the 116 All-Star members who have rated Cal-Maine -- some 92% -- believe the stock will outperform the S&P 500 going forward. These All-Star bulls include Mactalon and jinchoice, both of whom are ranked in the top 10% of our community.

In June, Mactalon reminded our community that Cal-Maine is the "largest egg producer in the United States, with over 15.5% of the market. It is also growing its sales with new acquisitions and larger flocks. A steady, upward climb in cash and financials, and only 100M in debt, only adds to the flavor of this egg."

A more recent pitch from jinchoice last month follows that line of thinking, writing:

Eggs are the cheapest source of protein that's out there, and it's highly price inelastic. This means that even a small increase in demand can boost egg prices. With increasing grain prices, other sources of protein like meat, will get ever more expensive, so not only would egg producers benefit from higher revenue, they would enjoy a more competitive pricing edge against the egg substitutes.

... Egg producing is a business with a decently high barrier to entry - you can't build chicken farms, obtain permits, find customers etc overnight. It is also not a very exciting field, which means the best and brightest won't be falling over themselves forming competing companies.

Finally, the company has a strong balance sheet and as far as I can tell, their management is competent.

What do you think about Cal-Maine, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor recommendation, JPMorgan Chase is a Motley Fool Income Investor recommendation, Google is a Rule Breakers pick, and Buffalo Wild Wings is a choice of Motley Fool Hidden Gems. The Fool owns shares of Buffalo Wild Wings. The Fool's disclosure policy always gets a perfect score.