- Cal-Maine Foods' earnings per share have surged, tripling due to the rise in egg prices, while facing a DOJ probe.
- Analysts set a positive price target for CALM with an implied upside from current levels.
- GF Value analysis suggests a potential downside, contrasting with analyst optimism.
Cal-Maine Foods (CALM, Financial), the largest producer and distributor of fresh shell eggs in the United States, recently experienced a premarket share drop of 5%. This decline follows the company's confirmation of its cooperation with a Department of Justice investigation into egg pricing strategies. Despite this challenging situation, Cal-Maine has reported a substantial earnings increase, with earnings per share soaring to $10.38, and revenue more than doubling to $1.42 billion, fueled by the sharp rise in egg prices.
Wall Street Analysts Forecast
Cal-Maine Foods Inc (CALM, Financial) has garnered attention from Wall Street analysts, who have provided one-year price targets. The average target price is set at $102.50, with high and low estimates at $108.00 and $97.00, respectively. This average target indicates a potential upside of 13.26% from the current price of $90.50. For further insights and detailed data, visit the Cal-Maine Foods Inc (CALM) Forecast page.
The consensus among two brokerage firms currently places Cal-Maine Foods Inc's (CALM, Financial) average recommendation at 2.5, corresponding to an "Outperform" rating. This recommendation scale ranges between 1 and 5, where 1 represents a Strong Buy and 5 signifies a Sell, showing a predominantly positive sentiment toward the stock.
GF Value Analysis
According to GuruFocus estimates, the GF Value for Cal-Maine Foods Inc (CALM, Financial) in one year is projected to be $69.57. This suggests a potential downside of 23.13% from the current trading price of $90.50. The GF Value represents GuruFocus's calculated fair value of the stock, derived from historical trading multiples, past business growth, and anticipated future performance. For a deeper dive into these metrics, please visit the Cal-Maine Foods Inc (CALM) Summary page.
In summary, while Cal-Maine Foods faces regulatory scrutiny, its financials are strong, propelled by increased egg prices. Investors should weigh the conflicting insights from Wall Street analysts and GF Value analysis when assessing the stock's future performance.
