CAL-MAINE FOODS INC (NASDAQ:CALM) Screens as a Top Growth Stock on Navellier's Criteria

CAL-MAINE FOODS INC (NASDAQ:CALM) has appeared as a notable candidate through a screening method based on Louis Navellier’s growth investing framework, as described in his book The Little Book That Makes You Rich. This method focuses on finding companies showing solid, improving fundamentals, including rising earnings revisions, regular positive surprises, strong sales and profit increases, growing margins, good cash flow, and high returns on equity. The process is made to find stocks with the possibility for lasting outperformance by concentrating on operational strength and progress in important financial measures.

Earnings Revisions and Surprises

A key part of Navellier’s method is the importance of positive analyst revisions, which can point to underlying strength not yet completely shown in market prices. CALM shows this with a notable 146.93% upward revision in the next quarter’s EPS estimates over the last three months. Also, the company has reported positive earnings surprises in three of the last four quarters, with an average beat of 14.81%. These numbers show that CALM has regularly surpassed expectations, strengthening analyst confidence and indicating the possibility for ongoing positive progress.

Growth in Sales and Earnings

Improving top-line growth is important for finding active companies. CALM’s revenue rose 83.20% year-over-year on a trailing twelve-month basis, while quarterly sales increased 72.23% compared to the same quarter last year. Even more notable is the bottom-line performance, with EPS jumping 393.08% over the past year and 203.45% on a quarterly basis. Such strong growth in both sales and profitability fits well with the method’s focus on companies that are not only getting bigger quickly but also turning that growth into earnings.

Margin Expansion and Cash Flow

Navellier points out that getting better profitability margins often distinguishes good growth stories from excellent ones. CALM’s operating margin increased by 171.83% over the past year, showing better efficiency and pricing ability. Along with this, free cash flow—a main sign of financial flexibility and quality—rose by 249.50%. Solid cash generation helps self-funded growth, lowers need for outside financing, and offers protection against market declines, making it a key part of lasting expansion.

Earnings Momentum and ROE

The method also focuses on earnings improvement and high returns on capital. CALM’s current quarterly EPS growth of 203.45% is much higher than the year-ago comparison growth of 2.20%, clearly showing positive momentum. Also, the company reached a return on equity of 47.65%, much better than the minimum 10% level suggested by Navellier. A high ROE shows efficient use of shareholder capital and often connects with competitive benefits and able management.

Fundamental Rating and Valuation

According to ChartMill’s detailed fundamental analysis, CALM receives an overall rating of 8 out of 10, doing better than most others in the Food Products industry. The report points out excellent profitability and outstanding financial health, including no debt and solid liquidity. Even though the stock is valued appealingly with a P/E ratio of 4.43—less expensive than 96.63% of industry rivals—analysts predict a decrease in future earnings. This contrast of strong past performance with careful forward estimates deserves notice, though the current fundamentals stay solid.

Conclusion

CAL-MAINE FOODS INC offers a notable case for investors using a structured growth method. Its excellent performance across earnings revisions, sales and profit increases, margin growth, cash flow creation, and return on equity matches closely with the standards in Navellier’s process. While future earnings forecasts add a point of caution, the company’s recent operational successes and strong financial condition make it a significant candidate for more study.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.