Is CALM a good stock to buy? We came across a bullish thesis on Cal-Maine Foods, Inc. on Value Don’t Lie’s Substack. Since the thesis was published on August 25th, CALM shares have pulled back as excess egg supply pressured prices and earnings, raising questions about whether its variable dividend can offset continued share-price weakness. In this article, we will summarize the bulls’ thesis on CALM. Cal-Maine Foods, Inc.’s share was trading at $62.07 as of October 29th 2026. CALM’s trailing P/E was 49.74 according to Yahoo Finance.
This isn’t the first time we see a food producer pitched as a great investment. Unfortunately, CALM shares lost 21.99% of their value year to date. Comparable stocks like Post Holdings and Hormel Foods lost 17.57% and 11.81% of their value, respectively, during the same period. Why are food stocks declining so much and has the pullback created a buying opportunity, or is the promise of dividend income overshadowing the risk of further losses?
In May, we published an article about the Top 10 High Dividend Stocks to Invest In According to Analysts and CALM ranked #10 in that article. Btw, the #1 stock in that list returned 7.41% since then. So, hedge funds were right about their #1 pick but CALM has lost ground, leaving investors looking for income facing a disappointing share-price performance. This article highlights CALM among the 12 Best Dividend Stocks to Invest In According to Jim Simons’ Renaissance Technologies. Before getting into our analysis, let’s take a look at the business and why some investors like the stock so much.
Cal-Maine Foods, Inc. (NASDAQ:CALM) is the largest egg producer in the United States, with about 50 million egg-laying hens and 1.2 billion dozen eggs sold in fiscal 2026. That’s roughly twice the flock size of its nearest competitor, and the company controls its entire supply chain, from breeding and hatcheries to processing, packaging, feed production, and over 34,000 acres of owned land.
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This scale matters because the egg business is highly cyclical, with prices and profits swinging sharply from year to year. At around $84 per share and a market value of about $4 billion, Cal-Maine Foods, Inc. trades at 1.6 times its book value, well below its 20-year average of 2.1 times. If the stock simply returns to that historical average, it could rise by roughly 40%.
The bullish case starts with Cal-Maine Foods, Inc.’s dominant position in the roughly $16 billion U.S. shell egg market, where the ten biggest producers control more than half of total output. Egg demand tends to stay steady because eggs are a cheap protein source, but supply can swing wildly due to bird flu outbreaks and how quickly or slowly producers ramp capacity up or down. Because of its size and integrated operations, Cal-Maine Foods, Inc. is well positioned to keep costs low through these cycles, and it has kept growing its market share through both organic expansion and acquisitions.
