Is Cal-Maine Foods, Inc. (CALM) the Biggest Agriculture Stock in 2025?

Cal-Maine Foods, Inc. (CALM), the largest producer and distributor of fresh shell eggs in the United States, has been making waves in the agriculture sector with its impressive financial performance in recent quarters. As investors seek opportunities in the agriculture space, the question arises: is Cal-Maine Foods the biggest agriculture stock in 2025? This article explores the company's financial performance, strategic focus, and potential challenges to determine its position in the agriculture sector.

Financial Performance

Cal-Maine Foods reported outstanding financial results for the second quarter of fiscal 2025, with quarterly net sales reaching an impressive $954.7 million and a net income of $219.1 million, or $4.47 per diluted share. The company's revenue growth, earnings per share (EPS) growth, gross profit margin, operating margin, return on assets (ROA), and return on equity (ROE) have all significantly improved compared to its historical performance and industry peers (Cal-Maine Foods, 2025).

Strategic Focus on Cage-Free and Specialty Eggs

Cal-Maine Foods' strategic focus on cage-free and specialty eggs has contributed to its growth and market position. The company has invested in expanding its cage-free capacity and processing facilities, allowing it to meet the growing consumer demand for these products. In the first quarter of fiscal 2025, Cal-Maine Foods sold 110.0 million dozens of specialty eggs, a 20.1% increase from the same period last year (Miller, 2024). This growth can be attributed to the company's ability to offer a diverse product mix, catering to evolving consumer preferences.

Moreover, the ongoing challenges posed by highly pathogenic avian influenza (HPAI) have led to a decline in the national egg supply, further driving demand for cage-free and specialty eggs. As of September 1, 2024, the total U.S. hen population fell approximately 4.5% below the five-year average to 307.6 million layers (Miller, 2024). This supply shortage, coupled with the growing consumer preference for cage-free and specialty eggs, is likely to continue to support Cal-Maine Foods' growth in this segment.

Potential Challenges and Risks

While Cal-Maine Foods has demonstrated strong financial performance and a strategic focus on cage-free and specialty eggs, the company faces several primary risks and challenges in 2025, such as the impact of highly pathogenic avian influenza (HPAI) and feed cost volatility. To address these issues, Cal-Maine Foods has maintained robust biosecurity programs, leveraged its scale to manage production, and implemented hedging strategies to mitigate the impact of price fluctuations (Cal-Maine Foods, 2025).

Conclusion

Cal-Maine Foods' impressive financial performance, strategic focus on cage-free and specialty eggs, and commitment to sustainability and responsible production practices position it well to capitalize on future trends in consumer demand for these products. Despite the challenges posed by HPAI and feed cost volatility, the company's proactive approach to addressing these issues and maintaining profitability suggests that Cal-Maine Foods is a strong contender for the title of the biggest agriculture stock in 2025. As investors seek opportunities in the agriculture sector, Cal-Maine Foods' compelling financial performance and strategic focus make it an attractive option for consideration.



Sources:
Cal-Maine Foods. (2025, November 30). Cal-Maine Foods Reports Second Quarter Fiscal 2025 Results. Retrieved from
Miller, S. (2024, October 1). Cal-Maine Foods Reports First Quarter Fiscal 2025 Results. Business Wire. Retrieved from