Earnings Durability Forecast Inspires Confidence in Cal-Maine Foods (CALM)

Cal-Maine Foods, Inc. (NASDAQ:CALM) is one of the most promising mid-cap consumer staples stocks under $100.

On January 8, Pooran Sharma from Stephens reiterated his stance on Cal-Maine Foods, Inc. (NASDAQ:CALM) with an equal weight rating. He lowered the price target on the stock from $95 to $85, implying 15% upside.

The analyst referred to the company’s Q2 earnings that, despite beating consensus targets, were significantly lower compared to the same period last year. He noted declining egg prices being the primary reason, after touching multi-year highs during the past spring season. For the near- and intermediate-term, he anticipates continued concerns regarding oversupply of eggs, along with added pressure from a seasonal drop in demand. Having said that, Sharma still has confidence in the long-run earnings durability of the business.

On January 7, Benchmark Co. analyst Ben Klieve reiterated his Buy rating on Cal-Maine Foods, Inc. (NASDAQ:CALM). He estimated a price target of $100, which results in an upside of almost 36%.

Klieve also based his ratings on second-quarter results, which saw the company delivering margins and earnings that beat the estimates. He highlighted a stable pricing structure across the premium Specialty Egg segment, which stayed resilient despite a huge drop in Egg prices.

Cal-Maine Foods, Inc. (NASDAQ:CALM) is the largest fresh shell eggs company in the United States, which is involved in the production, packaging, and distribution of eggs and egg products. Their ready-to-eat offerings include protein pancakes, egg wraps, and other byproducts. They distribute their products through grocery stores, supermarkets, club stores, and foodservice distributors.

READ NEXT: 15 Most Promising Mid-Cap Healthcare Stocks Under $50 and 11 Most Promising Small-Cap Industrial Stocks Under $50.

Disclosure: None. This article is originally published at Insider Monkey.