Cal-Maine Foods stock (CALM) gained (+3.92%) to 46.92 on Thursday, earning an upgrade as its Relative Strength (RS) Line as it rises to 95.
When looking for the best stocks to buy, one criteria we monitor closely is the stocks relative price strength. This helps us identify market leadership by showing how our candidate compares to that of other stocks on the major indexes over the last 52 weeks.
History has shown that the best stocks typically have an 80 or better RS Rating as they launch their biggest price moves.
Is Cal-Maine Foods Stock Ready to Run?
Cal-Maine Foods stock is working on a “W” pattern in a larger cup and handle base. We are looking for it to clear the breakout price of 48.63 on above average volume similat to Thursday. MACD and Stochastic (not shown) are turning bullish.
The stock cleared the 9ema today, in addtion to attempting a break above the 21 ema on its daily chart. We’re looking for price action to clear these resistance levels over the next few trading days.
The company reported revenue grew 33.0% on a year-over-year basis in its most recent earnings, March 29. Cal-Maine handily beat the consensus earnings estimate of $0.74 per share, earning 0.81 per share for the latest quarter.
Cal-Maine Foods stock holds the No. 5 rank among its peers in the Food-Meat Products industry group.
Sanderson Farms (SAFM) and Hormel Foods (HRL) are also among the group’s highest-rated stocks.
Pilgrims Pride Earnings Growth
Pilgrim’s Pride (PPC) purveyor of fresh and cooked chicken continues to put up outstanding earnings numbers, including a 124% jump in EPS last quarter.
On Thursday, Pilgrim’s Pride stock joined the leading group of stocks in this industry group with its Relative Strength Rating climbing to 95.
Earnings grew 124% last quarter to 56 cents per share. Pilgrims Pride in the prior three quarters saw earnings growth of 100%, 1,000% and 2%.
In the recent quarter revenue grew 29.5% on a year-over-year basis.
The food company plans to announce its second quarter earnings results after the market closes on July 27.
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Happy Trading,
Vinny
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