Cal-Maine (CALM) Upgraded to Strong Buy: Here's Why

Core Viewpoint - Cal-Maine Foods (CALM) has received an upgrade to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, indicating a positive earnings outlook that could lead to increased stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based solely on a company's changing earnings picture, which is a significant factor influencing stock prices [2][4]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, largely driven by institutional investors who adjust their valuations based on these estimates [4][6]. Cal-Maine's Earnings Outlook - For the fiscal year ending May 2024, Cal-Maine is expected to earn $4.51 per share, reflecting a year-over-year decline of 70.9% [8]. - Over the past three months, the Zacks Consensus Estimate for Cal-Maine has increased by 25.7%, indicating a positive trend in earnings estimates [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - The upgrade of Cal-Maine to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for price appreciation in the near term [11].