Investors believe that the only stocks that are affected by the business cycle are trade names, staples, etc., where profit margins and sales fluctuate between high and low values depending on the prices of the underlying product that is produced and sold. However, this has an impact on other stocks that are dependent on a single material, such as eggs, and today’s PPI shows that egg prices have gone nowhere, only gone up.
This means profits will likely increase for companies that sell eggs in the United States, as well as for those that maintain the agricultural inputs needed to keep eggs on the shelves when needed. This is why today’s list of stocks becomes important for investors to monitor the profits that can be made as egg prices continue to rise so that they can align their portfolios with the potential growth potential inherent in the industry and its profitability.
To cover various verticals and industries with rising egg prices and costs, stocks like Kal-Man Foods Inc. NASDAQ: CALM to give investors the best way to take advantage of this growth as the largest egg supplier in the United States, then there is Vital Farms Inc. NASDAQ: WHITL as a less commercial entity to offer investors the same bullish tailwinds seen in the industry today, and finally Costco Wholesale Company. NASDAQ: VALUE as a value proposition in the consumer goods sector to help consumers combat rising costs.
California stocks still have room to grow: what analysts predict next
Cal-Maine Foods today
(As of 5:45 p.m. ET)
- 52 week range
- $53.02
▼
$114.06
- Dividend yield
- 3.93%
- P/E ratio
- 11.86
- Target price
- $67.00
When it comes to price action as an indicator, Cal-Maine stock has all the sentiment investors could dream of as it trades at a 52-minute high today. However, there is a broader misconception about how Wall Street analysts view the future of this company, and this is where savvy investors can start planning their next stock purchase.
Producer price index trends show that the cost of other dairy products and the agricultural inputs needed to produce them is falling. This means that profits for these companies could also begin to shrink, as there is a limit to how much of these costs can be passed on to consumers.
That’s why earnings per share (EPS) are forecast to decline nearly 60% over the next 12 months, and this view may be an exaggeration of the actual performance of Cal-Maine stock today. Cal-Man controls more than 85% of the U.S. egg supply, according to the company’s latest investor presentation.
This means it probably doesn’t matter how spending changes in the coming quarters; The sheer scale and reach of Cal-Maine’s supply chain is enough to protect the stock’s profitability. Knowing this, institutional investors such as State Street have decided to increase their holdings in Cal-Maine shares by 3% as of November 2024, a sign of optimism for the company.
Vital Farms Stock Shows Bullish Signals: Why Momentum Could Continue to Rise
Vital Farms Today
(As of 5:45 p.m. ET)
- 52 week range
- $14.16
▼
$48.41
- P/E ratio
- 33.24
- Target price
- $39.20
Identifying these trends proved useful to Franklin Resources’ institutional buyers, who decided it was time to buy more Vital Farms shares even though they were already trading at 85% of their 52-week high. As of November 2024, these buyers chose to increase their holdings by 10.2%.
Following this distribution, the group’s net position increased to $13 million, a bullish sign for the stock’s future. However, some Wall Street analysts supported the trend; these institutional investors weren’t the only ones looking to express their bullish views on Vital Farms stock.
Representatives of DA Davidson saw enough reasons to reiterate their buy recommendation on Vital Farms shares, raising their estimate to $48 per share. To prove these goals right, the stock would need to rise as much as 23.5% from where it is trading today, not to mention a new high for the year on this bullish egg profitability theme.
Costco Stock Value Proposition: A Key Player in a Time of Rising Costs
Costco wholesale today
Costco wholesale
(As of 5:45 p.m. ET)
- 52 week range
- $640.51
▼
US$1008.25
- Dividend yield
- 0.48%
- P/E ratio
- 56.65
- Target price
- $997.75
When the rising cost of eggs inevitably hits shelves, shoppers will be faced with having to pay more for the products they want, which is an ongoing problem given today’s outlook on inflation. This is where Costco stock and its affordability value proposition comes into play.
Some would call the stock expensive at a price-to-earnings (P/E) ratio of 58.2x; others will understand that the market will always be willing to pay for stocks it believes will outperform in the coming months or years, and Costco fits that profile.
Trading today at a price-to-book (P/B) ratio of up to 18.6x, Costco stock commands a significant premium to the rest of the retail sector’s average of 5.5x, keeping that justifiable premium valuation intact. for stock performance during times of high inflation for certain products.
Some of those agents willing to overpay for future returns on Costco stock came from Geode Capital Management, an institutional buyer that added 1.7% to its Costco stock holdings, bringing its position today to $8.4 billion, or 2.1 % ownership in the company.
Before you consider Vital Farms, you need to hear this.
MarketBeat tracks Wall Street’s top-rated and best-performing analysts daily and the stocks they recommend to their clients. MarketBeat has identified five stocks that top analysts are quietly whispering to their clients to buy now, before the broader market takes hold… and Vital Farms wasn’t on the list.
While Vital Farms currently has a Moderate Buy rating among analysts, the top-rated analysts think these five stocks are Strong Buys.
View five stocks here
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