Higher egg prices may extend far into 2025, and egg producers like Cal-Maine could benefit
Published On Jan 9, 2025, 12:07 PM
Egg prices are surging due to a combination of factors including bird flu outbreaks, which have led to reduced production and fewer egg-laying hens. This situation is expected to keep prices elevated throughout 2025. Cal-Maine Foods, the largest egg producer in the U.S., stands to benefit from these higher prices, as they currently supply about 20% of the nation's shell eggs. Despite some analysts recommending caution on entering the stock due to its high valuation, others believe there is still potential for significant returns in the short term.
Stock Forecasts
CALM
Positive
Cal-Maine Foods is likely to continue performing well due to the elevated prices of eggs, driven by ongoing supply shortages. Their recent financial results show strong revenue growth, which may lead to further investor interest and potential stock price appreciation in the near term. However, caution is advised as stock valuations are currently high, and a market correction is possible.
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