Why Cal-Maine's Long-Term Looks Scrumptious


Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, egg producer Cal-Maine Foods has earned a respected four-star ranking.

With that in mind, let's take a closer look at Cal-Maine, and see what CAPS investors are saying about the stock right now.

Cal-Maine facts

Headquarters (founded)

Jackson, Miss. (1969)

Market Cap

$991.0 million


Packaged foods

Trailing-12-Month Revenue

$1.2 billion


Chairman/CEO Adolphus Baker

CFO Timothy Dawson

Return on Equity (average, past 3 years)



$163.1 million / $70.5 million


Michael Foods Group


Rose Acre Farms

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 767 members who have rated Cal-Maine believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, drewvogel, tapped the stock as a tasty long-term opportunity:

Since corn is a major input cost for [Cal-Maine] and we lack commensurate supply/demand mismatch for wholesale eggs, [Cal-Maine] profitability will suffer until at least Q3 2013 (calendar). The stock price will likely suffer with it, providing healthy buying opportunities. Meanwhile, [Cal-Maine] can continue to use its strong balance sheet to pursue its acquisition strategy. When feed costs revert to their normal cycle and/or wholesale egg prices rise due to consolidation, [Cal-Maine] will reap an increasing proportion of the upside.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Cal-Maine may not be your top choice.

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The article Why Cal-Maine's Long-Term Looks Scrumptious originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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