Cal-Maine (CALM) stock rallied 1% on Wednesday following the company’s earnings results. The stock traded as high as 9% higher during the trading session.
Cal-Maine Foods, Inc. is the largest producer and distributor of fresh shell eggs in the United States. The company’s operations include breeding, hatching, and raising chickens to produce eggs, which are then distributed to retailers, foodservice distributors, and consumers.
Shares of CALM stock are trading 60% higher over the last six months. Investors have bid the stock higher following the recent Bird Flu outbreak and the potential resurgence of inflation in 2025.
Today’s earnings came in better than analyst’s expectations.
The company earned $4.47 per share, $0.42 better than analyst had targeted.
Revenue for the quarter reflected an 82.5% increase from the same quarter last year also beating expectations.
Shares of the consumer-related stock have been trading in a 10% range between $100 and $110. That range has been in place since early December following a rapid 12-day, 11% rally in November. That was followed by another 16% rally in eight days in December.
The consolidation was healthy for Cal-Maine shares as the stock had become overbought from a technical perspective.
Cal-Maine shares hold a bullish outlook following today’s healthy earnings and a tailwind from the stock’s strong technical trends. Investors should target a continuation of the rally to a price target of $130.
