Is it a Good Time to Buy Cal-Maine Foods (CALM) Stock?

Diamond Hill Capital, an investment management company, released its “Small Cap Strategy” third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy returned -1.50% net of fees compared to a -2.19% return for the Russell 2000 Index. Investment in consumer staples, technology, and financial sectors contributed positively to the strategy’s performance. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

Diamond Hill Capital discussed stocks like Cal-Maine Foods, Inc. (NASDAQ:CALM) in the Q3 2022 investor letter. Headquartered in Ridgeland, Mississippi, Cal-Maine Foods, Inc. (NASDAQ:CALM) engages in the business of shell eggs. On October 24, 2022, Cal-Maine Foods, Inc. (NASDAQ:CALM) stock closed at $58.69 per share. One-month return of Cal-Maine Foods, Inc. (NASDAQ:CALM) was -4.45% and its shares gained 60.52% of their value over the last 52 weeks. Cal-Maine Foods, Inc. (NASDAQ:CALM) has a market capitalization of $2.872 billion.

Diamond Hill Capital made the following comment about Cal-Maine Foods, Inc. (NASDAQ:CALM) in its Q3 2022 investor letter:

“On an individual holdings’ basis, top contributors to return in Q3 included Cal-Maine Foods, Inc. (NASDAQ:CALM) and WESCO International. Tight hen supply tied to a bird flu outbreak has supported higher egg prices, a key driver for egg-producer Cal-Maine’s profitability. Outside of that exogenous event, Cal-Maine is well positioned amid an industry shift to cage-free eggs. Cal-Maine invested ahead of competitors in upgrading facilities — spending on its upgrades when inflation was lower — which we believe should prove an additional boon enabling ongoing share gains.”

Photo by josekarlo01 on Unsplash

Cal-Maine Foods, Inc. (NASDAQ:CALM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held Cal-Maine Foods, Inc. (NASDAQ:CALM) at the end of the second quarter which was 20 in the previous quarter.

We discussed Cal-Maine Foods, Inc. (NASDAQ:CALM) in another article and shared Diamond Hill Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• 10 Largest Fast Food Chains In the World
• 10 Best Counter Cyclical Stocks To Buy
• 13 Best Long-Term Dividend Stocks To Invest In

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