Trade-Ideas LLC identified

Calavo Growers

(

CVGW

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Calavo Growers as such a stock due to the following factors:

  • CVGW has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.6 million.
  • CVGW has traded 129,369 shares today.
  • CVGW is trading at 7.12 times the normal volume for the stock at this time of day.
  • CVGW is trading at a new high 3.00% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on CVGW:

Calavo Growers, Inc. markets, and distributes avocados, prepared avocados, and other perishable foods to food distributors, produce wholesalers, supermarkets, convenience stores, and restaurants worldwide. It operates in three segments: Fresh Products, Calavo Foods, and RFG. The stock currently has a dividend yield of 1.3%. CVGW has a PE ratio of 71. Currently there is 1 analyst that rates Calavo Growers a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Calavo Growers has been 134,900 shares per day over the past 30 days. Calavo has a market cap of $1.0 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.26 and a short float of 3.8% with 1.97 days to cover. Shares are up 2.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Calavo Growers as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 8.6%. Since the same quarter one year prior, revenues rose by 13.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CALAVO GROWERS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, CALAVO GROWERS INC continued to lose money by earning -$0.01 versus -$0.14 in the prior year. This year, the market expects an improvement in earnings ($1.92 versus -$0.01).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food Products industry. The net income increased by 445.2% when compared to the same quarter one year prior, rising from $1.55 million to $8.47 million.
  • Powered by its strong earnings growth of 444.44% and other important driving factors, this stock has surged by 58.08% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • CVGW's debt-to-equity ratio is very low at 0.27 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.80 is somewhat weak and could be cause for future problems.

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