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 "The Little Book That Makes You Rich." Strong earnings momentum, expanding margins, and high profitability make CALM a stock worth examining.

Key Strengths Aligning with Navellier’s Strategy

• Earnings Revisions & Surprises: Analysts have raised next-quarter EPS estimates by 42.12% over the past three months, signaling confidence in CALM’s near-term performance. The company has also exceeded earnings expectations in three of the last four quarters, with an average surprise of 15.98%.
• Sales & Earnings Growth: Revenue surged 60.01% year-over-year, while quarterly sales growth accelerated to 101.64%. EPS growth was even more impressive, climbing 303.79% over the past year and 337.97% quarter-over-quarter.
• Margin Expansion: Operating margins expanded by 143.13% year-over-year, reflecting improved cost efficiency and pricing power.
• Cash Flow Strength: Free cash flow grew 22.27% over the past year, supporting the company’s ability to reinvest in growth and maintain financial flexibility.
• High Return on Equity (ROE): CALM’s ROE of 41.60% ranks among the best in its industry, demonstrating effective use of shareholder capital.

Valuation & Dividend Appeal

Despite its strong growth, CALM remains attractively valued with a P/E ratio of 5.00, well below industry and S&P 500 averages. Additionally, the stock offers a hefty dividend yield of 13.59%, backed by a sustainable payout ratio of 21.16%.

For a deeper dive into CALM’s financial health, review the full fundamental analysis report.

Our Louis Navellier Growth Strategy screener lists more stocks that fit this strategy and is updated regularly.

Disclaimer

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