Should I buy Cal-Maine Foods stock in 2025? Expert Insights for South Africa

What is Cal-Maine Foods?

How much is the Cal-Maine Foods stock?

The price of Cal-Maine Foods stock is rising this week. As of now, CALM trades at $94.07, showing a 24-hour gain of $0.62 (+0.66%) but a weekly drop of 2.79%. The company’s market capitalization stands at $4.56 billion, with an average 3-month trading volume of 1,055,832 shares.

Notably, its price/earnings (P/E) ratio is 4.62, with a dividend yield of 7.21%, and a low beta of 0.17, indicating lower volatility.

For ZA investors, Cal-Maine Foods combines attractive dividends and stability, making it a compelling option in a sometimes turbulent global market.

Our full analysis of Cal-Maine Foods stock

In reviewing Cal-Maine Foods' most recent financial disclosures and its robust stock trajectory over the past three years, our comprehensive evaluation leveraged a proprietary blend of financial modeling, technical signals, sector benchmarks and competitive positioning. Through this multidimensional lens, Cal-Maine Foods stands out not only for its resilience but also for its dynamic upside potential within the consumer defensive segment. So, why might Cal-Maine Foods stock once again become a strategic entry point into the global food and agribusiness sector in 2025?

Recent Performance and Market Context

Cal-Maine Foods (NASDAQ: CALM) has demonstrated remarkable market outperformance, especially in the face of volatile macroeconomic conditions. As of 30 May 2025, the share price stands at $94.07, reflecting a +55.31% surge over the past twelve months and achieving a 52-week trading range between $57.43 and $116.41. While the last six months saw a minor contraction (-3.63%), this period followed a phase of exceptional growth, allowing for a measured consolidation phase.

Major catalysts behind CALM's strength include a profound spike in egg prices, driven by disrupted supply (notably the ongoing avian influenza outbreak) and declining feed costs, which have bolstered profit margins. The company exceeded Q3 2025 forecasts, with revenue soaring to $1.42 billion (+101.6% year-on-year) and net income at $508.5 million—underscoring its operational leverage and price-setting power.

Sector trends are overwhelmingly favourable for Cal-Maine, as defensive consumer staples prove resilient amid global economic uncertainty. Food inflation and shifting U.S. consumer preferences towards nutrition and traceability reinforce demand for branded, high-quality eggs—areas where Cal-Maine maintains undisputed leadership.

Technical Analysis

Cal-Maine’s technical set-up presents a well-balanced risk-reward profile, signalling potential entry points for both momentum and value-focused participants:

• Relative Strength Index (RSI, 14d): At 48.85, the RSI indicates a neutral stance—suggesting neither overbought nor oversold sentiment and thus offering scope for upward price movement upon positive triggers.
• MACD (12,26): The MACD stands at 1.09, flashing a bullish crossover. Momentum appears to be shifting constructively after a short-term pause.
• Moving Averages: While the 20- and 100-day averages ($94.64 and $93.89) provide near-term resistance, the 50- and 200-day averages ($91.57 and $87.66) are acting as dynamic support, confirming an underlying uptrend.
• Support and Resistance: Key technical support sits at $92.42, with an initial ceiling at $96.35. This compact trading range, coupled with high volatility, often precedes an explosive directional move—especially ahead of earnings or sector-wide announcements.

With mixed but improving technical signals, price action is coiled for a potential medium-term breakout. Investors seeking timely entries may find the current price zone attractive from a technical perspective.

Fundamental Analysis

Cal-Maine Foods' set of fundamentals is compelling, delivering a rare blend of attractive valuation, operational excellence, and strategic foresight:

• Revenue and Profitability: The most recent quarter witnessed a 101.6% revenue increase (Q3 2025 vs Q3 2024), with earnings per share of $10.38 exceeding consensus by 31%. This outsized profitability has been driven by both volume growth and elevated average selling prices ($4.06/dozen vs $2.25 last year).
• Valuation: With a trailing P/E ratio of just 4.62 and a consensus price target ($101.67) 30% above current levels, Cal-Maine remains significantly undervalued relative to its sector peer group.
• Dividend Yield: A forecast yield of 7.21% ($6.74 per annum) adds further appeal, particularly for long-term, income-oriented investors. The payout ratio is supported by robust free cash flow and prudent capital management.
• Structural Strengths:
• Market Leadership: Cal-Maine commands a ~20% share of the U.S. egg market—translating scale into pricing power and negotiating leverage.
• Vertical Integration: The company’s control across the entire supply chain (from breeding to distribution) ensures cost effectiveness, supply reliability and rapid response to market shocks.
• Brand Portfolio: Renowned brands such as Eggland’s Best and Land O’Lakes position Cal-Maine at the forefront of both retail and foodservice channels.
• Resilience and Innovation: Proactive adaptation to biosecurity issues (notably avian flu), as well as leading the transition to cage-free and specialty eggs, underpin the company’s future-proofing efforts.

Overall, the risk/reward profile is supported by both growth and defensive attributes, making CALM a rare outlier in the consumer staples universe.

Volume and Liquidity

CALM’s trading activity reinforces confidence and positions the stock for dynamic valuation shifts:

• 3-Month Average Daily Volume: 1,055,832 shares, supporting ample liquidity even for institutionally-sized trades.
• Free Float: With 49.05 million shares outstanding and a majority-public float, the stock benefits from robust price discovery and investor engagement.
• Secondary Offering: The recent, orderly secondary placement by the founding family (at $92.75/share in April 2025) was smoothly absorbed by the market, illustrating sustained institutional appetite and potentially facilitating a broader shareholder base.

Consistent high volumes and manageable float support greater flexibility and undergird the stock against unwarranted volatility, both key for investors seeking to add exposure at strategic inflection points.

Catalysts and Positive Outlook

Several high-visibility drivers are poised to underpin sustained outperformance into 2025 and beyond:

• Strategic Acquisition: The pending $258 million purchase of Echo Lake Foods is anticipated to broaden Cal-Maine’s product and market reach, fortify its competitive moat and provide significant synergies, with deal closing targeted by year-end 2025.
• Egg Supply Tightness: Ongoing avian influenza impact is forecast to constrain industry supply well into next year, supporting persistently favourable pricing dynamics.
• Transition to Cage-Free: Cal-Maine leads the evolution towards cage-free and specialty egg offerings, aligning with global sustainability mandates and consumer advocacy—a move that is expected to underpin premiumization.
• Vertical Integration: Further investments in feed efficiency and supply chain automation are likely to absorb cost pressures and boost gross margins.
• Regulatory Cooperation: The Department of Justice enquiry into sector pricing practices has thus far had minimal operational impact, and Cal-Maine’s transparent cooperation is reducing perceived headline risk.

From a broader sector standpoint, consumer defensive equities like Cal-Maine remain attractive for geographic diversification—especially for ZA-based investors seeking non-correlated returns and U.S. dollar exposure amid local market volatility.

Investment Strategies

The current market set-up offers a variety of strategic entry points, suitable for different investor profiles:

• Short-term Holders: May seek to capitalise on the upcoming Q4 earnings release (due 21-25 July 2025) and potential deal-closing headlines in H2 2025. The tight technical setup suggests a breakout above $96.35 could trigger momentum buying.
• Medium-term Investors: Will benefit from the integration of Echo Lake Foods and continued premium egg category expansion as price normalization slowly unfolds.
• Long-term Positions: Cal-Maine’s fundamental strength, leadership, robust cash flow, defensive business model, and consistently high dividend payout indicate an attractive anchor for any diversified global portfolio. The value case is further cemented by the stock’s low correlation (five-year beta 0.17) and ability to weather macroeconomic cycles.

Current price levels, proximate to dynamic support, may be particularly well-suited for incremental purchases or establishing a core position ahead of anticipated upward catalysts.

Is it the Right Time to Buy Cal-Maine Foods?

Cal-Maine Foods demonstrates a powerful combination of strong financials, attractive valuation, sector leadership and operational agility. Recent technical consolidation has corresponded with strategic developments—especially the impending Echo Lake acquisition—which could catalyse renewed upward momentum in both earnings and share price.

The fundamentals justify a renewed focus: persistent egg supply constraints, a successful pivot to specialty (including cage-free) offerings, and robust dividends set against a low P/E multiple collectively underpin the case for optimism. Moreover, the global shift towards resilient food and agriculture assets adds another tailwind for this defensive stalwart, especially for investors in regions such as South Africa who are seeking exposure to international food security themes.

In summary, Cal-Maine Foods seems to represent an excellent opportunity for investors seeking a blend of growth, income, and defensiveness in their portfolios. As the macroeconomic and competitive data points increasingly coalesce in its favour, the case for a strategic position in CALM stock appears highly compelling—particularly at current levels that may precede a new bullish phase.

For forward-looking investors, Cal-Maine Foods offers distinct upside and stands out as a robust platform for exposure to the evolving future of global food production.

How to buy Cal-Maine Foods stock in South Africa?

Buying shares of Cal-Maine Foods (CALM) online is now both simple and secure for South African investors. All you need is to open an account with a regulated broker, many of which allow you to access US stocks conveniently from South Africa. There are two main ways to gain exposure: you can buy Cal-Maine Foods shares outright (“spot buying”) or trade them via Contracts for Difference (CFDs), each offering distinct advantages. Choosing the best broker for your needs is essential—see our broker comparison further down the page for guidance.

Spot buying

Buying Cal-Maine Foods shares for cash means you directly own the shares on the NASDAQ, enabling you to benefit from any share price appreciation and dividends. Most SA brokers or international platforms charge a fixed commission per order, typically around R100–R200 (about $5–$10), plus some currency conversion fees.

Example

If the Cal-Maine Foods share price is $94.07, with $1,000 (approx R18,500), you can buy roughly 10 shares (after accounting for a $5 brokerage fee).

• Gain scenario: If the share price rises by 10%, your shares would be worth about $1,100.
• Result: That’s a +$100 gross gain, equating to +10% on your original investment, not including dividend income.

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on Cal-Maine Foods’ share price movements without owning the actual shares. You can go long (buy) if you expect the price to rise or go short (sell) if you expect a drop. CFD brokers typically charge a spread (a small percentage built into the buy/sell price) and an overnight financing fee if you hold positions for more than one day.

Example

With a $1,000 deposit and 5x leverage, you open a CFD position worth $5,000 in Cal-Maine Foods shares.

• Gain scenario: If the share price rises by 8%, your leveraged position gains 8% × 5 = 40%.
• Result: You make a $400 gain on your $1,000 stake (excluding spread and any overnight fees). Remember, leverage increases risk as well as potential returns.

Final advice

Before you invest, always compare different brokers’ fees, currency conversion charges, and trading conditions—costs can vary widely and make a real difference to your returns. Ultimately, the choice between spot buying and CFD trading will depend on your investment goals, risk appetite, and preferred investment horizon. For South African investors, both options are accessible and can be tailored to either longer-term wealth-building (spot buying) or active trading (CFDs). Use our broker comparison below to find the platform that best fits your needs.

Our 7 tips for buying Cal-Maine Foods stock

The latest news about Cal-Maine Foods

Cal-Maine Foods posted stronger-than-expected Q3 2025 results, beating analyst estimates by over 30% on EPS. The company reported quarterly sales of $1.42 billion—an exceptional 101.6% increase year-over-year—driven by historic highs in egg pricing following avian influenza outbreaks disrupting US egg markets. Net income for the quarter climbed to $508.5 million, and quarterly earnings per share reached $10.38, well ahead of the expected $7.93. This robust operational performance underlines Cal-Maine’s resilience, cost discipline amid lower feed prices, and ability to capture demand, reinforcing the company’s reputation in the defensive food sector, which is held in high regard by institutional investors in markets like South Africa for its non-cyclical consumption profile and consistent dividend history.

The stock’s dividend yield now stands at an impressive 7.21%, supported by significant cash flows and a payout of $6.74 per share annually. Such a high yield compares very favorably to global and local South African food producers, making CALM of particular interest to ZA-based asset managers seeking USD exposure in the consumer staples space. The stock’s low price/earnings ratio of 4.62 and a one-year gain of over 55% mark it as both a value and growth opportunity, appealing to income and growth-focused investors in South Africa’s highly competitive retirement and pension sector, where diversification into defensive international equities is a rising trend.

Cal-Maine continues to expand strategically, recently announcing the $258 million acquisition of Echo Lake Foods, a major move to broaden its product portfolio and competitive position. Set to close by year-end, this transaction allows Cal-Maine to further vertically integrate and diversify its product offering, including prepared egg and breakfast foods, thus increasing its attractiveness as a potential supplier to Southern African importers, foodservice players, or grocery chains interested in US-origin processed egg products. The move underscores the company’s commitment to innovation and supply chain control—features that resonate with ZA market participants highly attuned to global food security, traceability, and supply stability.

Technical indicators are providing supportive signals for further gains, despite recent weekly volatility. While the share price dipped 2.79% in the last week, momentum remains constructive: the MACD indicates a buy signal, the 50-day and 200-day moving averages are trending upward relative to the current price, and the RSI is in neutral territory, suggesting the absence of overheating. This technical profile is favorable for medium-term investors, including South African institutional buyers who may consider tactical allocations to CALM, benefiting from both the strong dollar returns and low-beta defensive characteristics amid global equity market uncertainty.

Despite an ongoing DOJ investigation into industry-wide egg pricing, Cal-Maine’s business continuity and operational outlook remain robust, with no significant impact registered on performance or dividends. The company is fully cooperating with US regulators, and the regulatory overhang has not translated into meaningful market instability nor compromised its ability to deliver on strategic or financial targets. This clarity provides further reassurance to international investors—including those in South Africa’s regulated asset management environment—regarding compliance and operational risk, supporting continued interest in the stock as a diversified exposure to the US defensive food sector.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.