GEO Investing

Strong EPS growth in estimated EPS for 2015 and 2016 has lead us to begin our initial due diligence on both Everyday Health Inc. (NYSE:EVDY) and Cal-Maine Foods Inc. (NASDAQ:CALM).

Strong EPS Growth in Analyst Estimates on EVDY and CALM Can Not Be Ignored

A bullish Q1 2015 conference call and strong analyst estimates has piqued our interest in the EVDY story.  We have a scheduled interview with the company on Friday where we hope to learn more about the company’s growth prospects.  Analyst 2015 and 2016 EPS estimates are $0.84 and $1.28 respectively, calling for 42% and 52% growth. EVDY provides digital health and wellness solutions. The company’’s portfolio includes websites, mobile applications, and social media assets that provide consumers and healthcare professionals with access to health and wellness content.

We have just begun our initial due diligence on CALM.  We believe the $11.00 2016 EPS estimates can not be ignored.  While we are cautious, we believe the company’s strong EPS growth in 2014 (115%) and strong growth shown so far in fiscal 2015 (ended May 2015; estimated at 47%) are reason enough to dig further.  We will attempt to reach out to analysts covering the company to gauge what the key catalysts for such strong EPS growth may be.   At first glance, it seems the company is benefiting from lower cost, as well as a favorable pricing environment.  CALM produces and markets specialty shell eggs, including nutritionally enhanced, cage free, organic, and brown eggs under the Egg-Land’s Best, Land O’ Lake, Farmhouse, and 4-Grain brand names; and private label specialty shell eggs. We are speculating the company’s emphasis on marketing cage free/organic products could positively affect its revenue, given the recent bird flu epidemic.

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