Should you consider CAL-MAINE FOODS INC (NASDAQ:CALM) for high growth investing?

Our stockscreener has identified a possible breakout setup on CAL-MAINE FOODS INC (NASDAQ:CALM). This occurs when the stock consolidates following a significant upward movement. While the breakout outcome cannot be guaranteed, it may be worth monitoring NASDAQ:CALM for potential opportunities.

Analyzing the Technical Aspects

Every day ChartMill assigns a Technical Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple technical indicators and properties.

We assign a technical rating of 7 out of 10 to CALM. CALM was one of the better performers in the overall market, it is still ok in the medium term time frame, but very the very recent evolution is negative.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• Looking at the yearly performance, CALM did better than 93% of all other stocks. We also observe that the gains produced by CALM over the past year are nicely spread over this period.
• CALM is part of the Food Products industry. There are 89 other stocks in this industry. CALM outperforms 94% of them.
• CALM is currently trading in the middle of its 52 week range. This is in line with the S&P500 Index, which is also trading in the middle of its range.
• In the last month CALM has a been trading in the 83.11 - 100.67 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

Our latest full technical report of CALM contains the most current technical analsysis.

How do we evaluate the setup for CALM?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. CALM scores a 7 out of 10:

Besides having an excellent technical rating, CALM also presents a decent setup pattern. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 95.33, a Stop Loss order could be placed below this zone.

Growth Examination for CALM

Every stock receives a High Growth Momentum Rating (HGM) from ChartMill, ranging from 0 to 10. This rating assesses various growth and profitability aspects, including historical and projected EPS and revenue growth. CALM boasts a 7 out of 10:

Explosive Earnings Growth

• The recent financial report of CALM demonstrates a 338.0% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• CALM has achieved 304.0% growth in EPS over the past 12 months, reflecting a sustained improvement in earnings performance.
• Over the past 3 years, CALM has demonstrated 402.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• The quarter-to-quarter (Q2Q) revenue growth of 102.0% of CALM has been strong, reflecting the company's ability to generate consistent sales growth. This growth suggests the company's ability to meet customer needs and drive revenue growth.
• CALM shows accelerating Sales growth: when comparing the current Q2Q growth of 102.0% to the previous quarter Q2Q growth of 82.46%, we see the growth rate improving.
• Sales growth accelerated for 3 quarters in a row.
• With impressive 1-year revenue growth of 60.01%, CALM showcases its ability to generate increased sales and revenue. This growth highlights the company's strong customer demand and its effective business strategies.
• Over the past 3 months, analysts have adjusted their EPS Estimate for CALM with a 503.0% change. This highlights the evolving outlook on the company's EPS potential.
• CALM has exceeded EPS estimates 3 times in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.

Financial Strength & Profitability

• With a favorable trend in its operating margin over the past year, CALM demonstrates its ability to enhance profitability through efficient operations. This growth reflects the company's focus on optimizing its cost structure.
• With a favorable trend in its free cash flow (FCF) over the past year, CALM demonstrates its ability to generate robust cash flows and maintain financial stability. This growth reflects the company's focus on efficient capital allocation and cash management.
• CALM has achieved an impressive Return on Equity (ROE) of 41.6%, showcasing its ability to generate favorable returns for shareholders.
• A Debt/Equity ratio of 0.0 indicates that CALM is leveraging debt effectively without excessive risk.

Institutional Confidence & Market Strength

• CALM demonstrates a balanced ownership structure, with institutional shareholders at 91.92%. This indicates a diverse investor base, which can contribute to price stability and potential future growth.
• CALM has exhibited strong Relative Strength(RS) in recent periods, with a current 93.86 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position.

Our High Growth Momentum Breakout screen will find you more ideas suited for high growth momentum breakouts.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.