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Commodity Check: Is it the Right Time to Invest in These High Inflationary Winners?

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High inflation has led to significant increases in commodity prices in recent years. Companies like Cal-Maine Foods (CALM), Lamb Weston (LW), and Nucor (NUE) have benefited greatly from this trend. However, as inflation begins to ease, it’s important to review the prospects of these inflationary winners.

Cal-Maine & Egg Prices

Cal-Maine, the largest producer and distributor of fresh shell eggs in the United States, has seen a decline in stock prices as the cost per dozen eggs has fallen. Despite this, Cal-Maine has been able to stack cash and maintain its market dominance. With cash & equivalents soaring to $648 million at the end of fiscal year 2023, compared to $175 million in 2022, Cal-Maine’s sustainability looks promising.

Lamb Weston & Potato Prices

Lamb Weston, the largest potato producer in North America, has seen its stock rise along with potato prices. Although the recent dip in stock prices presents a potential buying opportunity, Lamb Weston’s earnings are forecasted to increase in the coming years. The company’s stock currently holds a Zacks Rank #2 (Buy).

Nucor & Steel Prices

Investing in leading steel producer Nucor has been profitable, but it may be time to take some profits as steel prices start to decline. Nucor’s stock currently holds a Zacks Rank #4 (Sell). However, Commercial Metals (CMC) has seen positive earnings per share (EPS) revisions and could be a better alternative for investors. Commercial Metals stock currently holds a Zacks Rank #1 (Strong Buy).

Bottom Line

Monitoring commodity prices and stocks in a high inflation environment is crucial for investors. September’s Consumer Price Index (CPI) data will provide better insights into the commodities that may present opportunities moving forward.

Disclosure: The author holds no positions in any stocks mentioned.

Keyword Phrases: inflationary winners, stock prices, company analysis, commodity prices, buying opportunities

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