CAL-MAINE FOODS INC (NASDAQ:CALM) – A High-Growth Momentum Stock with Strong Technical Setup

CAL-MAINE FOODS INC (NASDAQ:CALM) stands out as a high-growth momentum candidate with a solid technical setup. The company, a leading producer and distributor of shell eggs, has demonstrated exceptional earnings and sales growth while maintaining strong technical momentum.

Growth Momentum Highlights

• Earnings Growth: CALM reported a staggering 303.8% year-over-year EPS growth (TTM), with recent quarterly EPS growth exceeding 337.9%. The previous quarter saw an even more impressive 1,177.1% increase.
• Sales Growth: Revenue growth over the past year reached 60.0%, with the latest quarter posting a 101.6% year-over-year increase.
• Profit Margins: The company’s profit margin expanded to 35.9% in the most recent quarter, up from 17.7% three quarters prior.
• Analyst Revisions: EPS estimates for the next year have been revised upward by 46.5% over the past three months, reflecting improving sentiment.
• Earnings Surprises: CALM has beaten EPS estimates in three of the last four quarters, with an average surprise of 16.0%.

Technical Strength & Setup

• Technical Rating (9/10): CALM’s strong price momentum and relative strength place it among the top performers in the market, outperforming 93% of all stocks over the past year.
• Setup Rating (8/10): The stock has been consolidating in a range between $90.07 and $100.54, presenting a potential breakout opportunity above resistance at $99.64.
• Support Levels: Multiple support zones exist below the current price, including a key area around $94.35-$94.91, providing a clear stop-loss level for traders.
• Trend Strength: The short-term trend is positive, while the long-term trend remains neutral, suggesting improving momentum.

Why This Setup Matters

High-growth stocks with strong technical setups often present attractive trading opportunities. CALM’s combination of accelerating earnings, expanding margins, and a well-defined consolidation pattern makes it a candidate for momentum investors.

For more high-growth momentum stocks with strong technical setups, check our High Growth Momentum Breakout Setups Screen.

A detailed technical analysis of CALM can be found in the full technical report.

Disclaimer

This is not investment advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.