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 (CALM 2.01%) 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) |
Jackson, Miss. (1969) |
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Market Cap |
$991.0 million |
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Industry |
Packaged foods |
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Trailing-12-Month Revenue |
$1.2 billion |
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Management |
Chairman/CEO Adolphus Baker CFO Timothy Dawson |
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Return on Equity (average, past 3 years) |
18.3% |
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Cash/Debt |
$163.1 million / $70.5 million |
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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.
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