Trade-Ideas LLC identified

Calavo Growers

(

CVGW

) as a new lifetime high 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 $12.5 million.
  • CVGW has traded 4,026 shares today.
  • CVGW is trading at a new lifetime high.

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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 1.2%. CVGW has a PE ratio of 38. Currently there are 3 analysts that rate Calavo Growers a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Calavo Growers has been 147,800 shares per day over the past 30 days. Calavo has a market cap of $1.1 billion and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.80 and a short float of 7.3% with 6.12 days to cover. Shares are up 35.4% year-to-date as of the close of trading on Monday.

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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 solid stock price performance, growth in earnings per share, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:

  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • CALAVO GROWERS INC has improved earnings per share by 14.3% 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 two years. We feel that this trend should continue. During the past fiscal year, CALAVO GROWERS INC turned its bottom line around by earning $1.58 versus -$0.01 in the prior year. This year, the market expects an improvement in earnings ($2.05 versus $1.58).
  • Net operating cash flow has slightly increased to $17.31 million or 5.57% when compared to the same quarter last year. In addition, CALAVO GROWERS INC has also modestly surpassed the industry average cash flow growth rate of 3.24%.
  • CVGW's debt-to-equity ratio is very low at 0.16 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 0.86 is somewhat weak and could be cause for future problems.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Food Products industry and the overall market on the basis of return on equity, CALAVO GROWERS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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