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 $14.0 million.
  • CVGW has traded 86,577 shares today.
  • CVGW is trading at 5.57 times the normal volume for the stock at this time of day.
  • CVGW is trading at a new high 7.05% 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 1.7%. CVGW has a PE ratio of 3. 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 219,700 shares per day over the past 30 days. Calavo has a market cap of $831.7 million and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.79 and a short float of 7% with 3.75 days to cover. Shares are up 0.7% 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 revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income 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:

  • CVGW's revenue growth has slightly outpaced the industry average of 1.0%. Since the same quarter one year prior, revenues slightly increased by 3.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • 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 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 ($1.96 versus $1.58).
  • 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 485.4% when compared to the same quarter one year prior, rising from -$1.24 million to $4.79 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Food Products industry and the overall market, CALAVO GROWERS INC's return on equity exceeds that of both the industry average and the S&P 500.

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