Calavo Growers (CVGW) Hits New Lifetime High Today

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

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 $7.7 million.
  • CVGW has traded 8,463 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 1.4%. CVGW has a PE ratio of 126. Currently there are 2 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 102,200 shares per day over the past 30 days. Calavo has a market cap of $936.1 million and is part of the consumer goods sector and food & beverage industry. The stock has a beta of 0.35 and a short float of 3.1% with 4.18 days to cover. Shares are up 19.5% year-to-date as of the close of trading on Wednesday.

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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 low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 10.9%. 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 ($1.90 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 62.05% 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 0.26 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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