CAL-MAINE FOODS INC (NASDAQ:CALM) – A Strong Contender for Growth Investors

CAL-MAINE FOODS INC (NASDAQ:CALM) stands out as a compelling pick for investors following Louis Navellier’s growth strategy. The company, a leading producer and distributor of shell eggs, meets multiple criteria outlined in Navellier’s "Little Book That Makes You Rich," thanks to its strong earnings momentum, profitability, and cash flow growth. Below, we break down why CALM fits this strategy.

Key Strengths Aligning with Navellier’s Growth Criteria

• Earnings Revisions & Surprises: Analysts have raised next-quarter EPS estimates by 105.7% over the past three months, signaling confidence in CALM’s near-term performance. The company has also delivered an average earnings surprise of 16% over the last four quarters.
• Sales & Earnings Growth: Revenue surged 60% year-over-year, while quarterly sales jumped 101.6%. EPS growth is even more impressive, with a 303.8% year-over-year increase and a 338% quarterly rise.
• Expanding Margins: Operating margin growth soared 143% over the past year, reflecting improved efficiency and pricing power.
• Strong Cash Flow: Free cash flow grew 22.3% year-over-year, supporting the company’s ability to reinvest and sustain dividends.
• High Return on Equity: CALM’s ROE of 41.6% ranks among the best in its industry, indicating effective use of shareholder capital.

Valuation & Dividend Appeal

Despite its growth, CALM remains reasonably priced with a P/E ratio of 4.76, well below industry and S&P 500 averages. The stock also offers a hefty 14.7% dividend yield, though investors should note that future earnings are projected to decline slightly.

For a deeper dive, review the full fundamental analysis of CALM.

Our Little Book Growth Strategy screener lists more stocks matching these criteria.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but always conduct your own analysis before making investment decisions.