We came across a bullish thesis on Cal-Maine Foods, Inc. (CALM) on Substack by Charly AI. In this article, we will summarize the bulls’ thesis on CALM. Cal-Maine Foods, Inc. (CALM)’s share was trading at $92.68 as of April 24th. CALM’s trailing P/E was 4.58 according to Yahoo Finance.
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Cal-Maine Foods (CALM) has delivered exceptional growth, driven by elevated egg prices, efficient operations, and strategic acquisitions such as ISE America. In its most recent quarter, revenue surged 101.6% year-over-year, propelled by high demand and supply disruptions caused by avian flu (HPAI), which contributed to a sharp rise in gross margins to 50.5% from 31.1%. With a strong balance sheet—$497.2 million in cash and minimal debt—CALM is well-positioned to invest in cage-free production, aligning with regulatory trends and growing consumer demand. These investments are expected to enhance the company’s long-term market share and operational resilience, even as risks like regulatory cost inflation and future HPAI outbreaks linger. While egg prices are naturally volatile, CALM’s emphasis on high-margin specialty eggs, which grew 25.4% in sales, provides a stabilizing buffer and supports sustained profitability.
On the technical front, the stock’s rising 50-day moving average and positive MACD momentum indicate bullish sentiment, though resistance around the $100 level may create near-term volatility. Valuation metrics paint a mixed picture: a trailing P/E of just 4.46 suggests the stock is undervalued on current earnings, while a forward P/E of 29.98 reflects cautious optimism regarding future profitability amid potential market normalization. Nonetheless, the company’s strategic discipline and cash strength reduce downside risk and support its ability to weather temporary headwinds.
With its leading industry position, operational efficiency, and capital flexibility, CALM offers a compelling investment opportunity. Investors benefit from both short-term catalysts—like strong pricing power—and long-term drivers such as regulatory shifts toward cage-free production. Despite inherent risks tied to commodity pricing and animal health, the company’s fundamentals and strategy support a BUY rating. For those seeking exposure to a resilient, cash-rich agribusiness, CALM stands out as an attractive pick for both near-term performance and durable growth.
Cal-Maine Foods, Inc. (CALM) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held CALM at the end of the fourth quarter which was 24 in the previous quarter. While we acknowledge the risk and potential of CALM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CALM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
