On Thursday, Cal-Maine Foods Inc. (NASDAQ:CALM) shares advanced by nearly 1% to trim Wednesday’s losses. The company reported its most recent quarterly results Tuesday after the close. The stock plunged sharply on Wednesday morning before bouncing back later to reduce the session losses.
Cal-Maine posted FQ2 earnings per share of $0.02, missing the consensus Street estimate of $0.30. On the other hand, revenue for the quarter grew by 12.5% from the same period last year to $390.3 million, exceeding the consensus expectation by $2.5 million.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
The stock has fallen by more than 14% since hitting its current yearly high of $42.95 on the 10th of March.
Cal-Maine still looks overvalued
From an investment perspective, Cal-Main shares still trade at a steep P/E ratio of 508.06, making the stock too expensive for value investors.
In addition, analysts expect its earnings per share to plunge by 88.80% this year before bouncing back by 92.62% next year.
Therefore, growth investors may also opt for alternatives in the market.
Technically, Cal-Maine shares seem to be trading within a descending channel formation in the intraday chart. However, the stock recently swung to complete a bullish breakout before pulling back to the channel.
Therefore, investors could target extended pullback profits at about $35.89, or lower to $35.11, while $37.29 and $38.03 are crucial support zones.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use:
- Etoro, trusted by over 13m users worldwide. Register here >
- bitFlyer, simple, easy to use and regulated. Register here >
