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, making it an interesting prospect for investors seeking both fundamental strength and favorable chart patterns. The company, a leading producer and distributor of shell eggs, has demonstrated exceptional earnings and sales growth while maintaining strong technical momentum.

Fundamental Growth Momentum

CALM scores a 7 out of 10 on the High Growth Momentum Rating, reflecting strong earnings and revenue expansion. Key highlights include:

• EPS Growth (TTM): Up 303.8% year-over-year, with recent quarterly EPS growth exceeding 337%.
• Sales Growth (TTM): Revenue surged 60%, with the latest quarter posting 101.6% year-over-year growth.
• Profit Margins: The latest quarter’s profit margin reached 35.9%, showing significant expansion from prior periods.
• Analyst Revisions: EPS and revenue estimates for the next year have been revised upward by 19.5% and 19.4%, respectively, over the past three months.
• Earnings Surprises: The company has beaten EPS estimates in 3 of the last 4 quarters, with an average surprise of 16%.

These metrics indicate strong operational performance and positive momentum, making CALM a compelling candidate for growth-focused investors.

Technical Strength & Setup Quality

CALM’s technical profile is equally impressive, with a Technical Rating of 10 and a Setup Rating of 8. Key observations from the technical report include:

• Trend Strength: Both short-term and long-term trends are positive, with the stock outperforming 87% of the market over the past year.
• Consolidation Pattern: Prices have been consolidating in the $91.70 - $104.49 range, presenting a potential breakout opportunity above $103.08.
• Support & Resistance: Strong support exists near $96.99, while resistance sits just above current levels at $102.27.
• Relative Strength: CALM ranks in the top 10% of its industry (Food Products), reflecting strong sector leadership.

The combination of high growth momentum and a well-defined technical setup suggests CALM could be poised for further upside if the breakout materializes.

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

Disclaimer

This is not investment advice. Always conduct your own research and consider risk management before making investment decisions.