CAL-MAINE FOODS INC (NASDAQ:CALM) Emerges as a High-Growth Momentum Stock with Strong Technical Setup

Investors looking for high-growth momentum stocks with strong technical setups often focus on companies showing faster earnings growth, increasing profit margins, and rising analyst estimates, all while displaying positive price trends. The ChartMill High Growth Momentum (HGM) Rating merges these growth indicators with technical analysis, pinpointing stocks that not only have strong financial momentum but also offer good entry opportunities. CAL-MAINE FOODS INC (NASDAQ:CALM) stands out as a strong choice under this system, earning a 6 in HGM, a top score of 10 in Technical Rating, and a solid 7 in Setup Quality.

Fundamental Growth Momentum

CALM’s high growth momentum is supported by several important factors:

• Strong Earnings Growth: The company’s trailing twelve-month (TTM) EPS is $24.95, showing a remarkable 393% year-over-year increase. Recent quarterly EPS growth also reflects this trend, with 203% growth in the last quarter compared to the same period a year ago, after even larger jumps in earlier quarters (337%, 1,177%, and an exceptional 15,200% in prior periods).
• Revenue Growth: Sales growth has been equally notable, with TTM revenue rising 83% year-over-year, backed by strong quarterly results, including 72% growth in the most recent quarter and 101% in the previous quarter.
• Improved Profit Margins: CALM’s profit margins have grown significantly, reaching 31% in the latest quarter, up from 19% a year earlier, showing better operational efficiency and pricing control.
• Upward Revisions & Surprises: Analysts have increased next-year EPS estimates by 14.7% over the past three months, while revenue estimates have been raised by 11.1%. The company has also exceeded EPS estimates in three of the last four quarters by an average of 14.8%.

These metrics match the High Growth Momentum Rating’s emphasis on faster earnings growth, rising revisions, and margin improvement—key factors for momentum investors using strategies like CANSLIM or Minervini.

Technical Strength & Setup Quality

CALM’s technical performance adds to its appeal:

• Top Technical Rating (10/10): The stock is in a clear uptrend across all timeframes, with both short-term and long-term trends rated as positive. It trades above all major moving averages (20-day, 50-day, 100-day, and 200-day), all trending upward—a sign of continued bullish momentum.
• Strong Relative Performance: CALM has outperformed 89% of all stocks over the past year and 90% of its peers in the Food Products industry, showing leadership in its sector.
• Consolidation & Breakout Potential: With a Setup Rating of 7, CALM is moving out of a consolidation phase within a $98.31–$126.40 range. The stock has recently shown less volatility, and a clear support area exists between $103.53–$106.02, offering a logical place for stop-loss orders. Resistance is noted at $115.80, with a move above this level possibly indicating the next upward move.

For a closer look at CALM’s technicals, check the full technical analysis report here.

Why This Combination Matters

High-growth momentum strategies work best when strong fundamentals align with technical breakouts. CALM’s rapid earnings growth, margin improvement, and rising estimate revisions meet the fundamental requirements, while its bullish chart pattern and consolidation setup provide a favorable risk/reward entry. This dual confirmation lowers the chance of buying overextended stocks and raises the odds of joining sustained upward trends.

Find More High-Growth Momentum Setups

CALM is one of several stocks currently meeting these strict criteria. For investors searching for more high-growth momentum ideas with strong technical setups, explore the full screen results here.

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Always conduct your own research and consider your risk tolerance before making investment decisions.