Calavo Story

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CVGW -- USA Stock  

USD 75.86  1.22  1.63%

While this unique economic environment continues, Calavo Growers may throw investors more surprises in few days. We will evaluate why we are still confident in anticipation of a recovery. Calavo Growers is currently traded for 71.50. The entity has historical hype elasticity of -0.06. The average price elasticity to hype of competition is about 0.02. The firm is forecasted to decline in value after the next headline, with the price expected to drop to 72.0. The average volatility of media hype impact on the company stock price is way over 100%. The price decrease on the next news is expected to be -0.11%, whereas the daily expected return is currently at 0.09 percent. The volatility of related hype on Calavo Growers is about 690.48% with expected price after next announcement by competition of 71.52 Given the investment horizon of 30 days the next forecasted press release will be in about 5 days.
Published over a month ago
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Volatility may be your only friend when it comes to investing in Calavo Growers
Macroaxis provides unbiased investment recommendation on Calavo Growers that should be used to complement current analysts and expert consensus on Calavo Growers. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. About 84.0% of the company shares are held by institutions such as insurance companies. The book value of Calavo Growers was currently reported as 15.18. Calavo Growers has Price/Earnings To Growth (PEG) ratio of 2.82. The entity recorded a loss per share of 0.84. The firm last dividend was issued on the 12th of November 2020.
The successful prediction of Calavo Growers stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Calavo Growers, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Calavo Growers based on Calavo Growers hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Calavo Growers's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Calavo Growers's related companies.

Use Technical Analysis to project Calavo expected Price

Calavo Growers technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Calavo Growers technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Calavo Growers trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How Calavo utilizes its cash?

To perform a cash flow analysis of Calavo Growers, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Calavo Growers is receiving and how much cash it distributes out in a given period. The Calavo Growers cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Calavo Growers Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Calavo Growers reported Net Cash Flow from Operations of 33.21 Million in 2020

Another angle On Calavo Growers

The company reported the previous year's revenue of 1.12 B. Net Loss for the year was (14.64 M) with profit before overhead, payroll, taxes, and interest of 128.08 M.
 2017 2018 2019 2020 (projected)
Interest Expense831 K948 K853.2 K847.83 K
Gross Profit113.62 M128.08 M147.29 M125.82 M

Cost of Revenue Breakdown

Calavo Growers Cost of Revenue yearly trend continues to be fairly stable with very little volatility. Cost of Revenue will likely drop to about 1.1 B in 2020. Cost of Revenue usually refers to the aggregate cost of goods produced and sold and services rendered during the reporting period. Calavo Growers Cost of Revenue is fairly stable at the moment as compared to the past year. Calavo Growers reported Cost of Revenue of 1.23 Billion in 2019
2013
2014
2015
2016
2017
2018
2019
2020
2013711.28 Million
2014771.6 Million
2015828.14 Million
2016961.02 Million
2017975.14 Million
20181.07 Billion
20191.23 Billion
20201.07 Billion

Calavo Growers will most likely finish below $73 in 60 days

Latest Information Ratio is up to -0.02. Price may fall again. Calavo Growers currently demonstrates below-verage downside deviation. It has Information Ratio of -0.02 and Jensen Alpha of 0.15. However, we do advice investors to further question Calavo Growers expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Takeaway on Calavo Growers Investment

While some firms under the packaged foods industry are still a bit expensive, Calavo Growers may offer a potential longer-term growth to sophisticated investors. Taking everything into account, as of the 21st of December 2020, our research shows that Calavo Growers is a rather very steady investment opportunity with a very low probability of distress in the next two years. From a slightly different view, the entity currently appears to be fairly valued. However, our up-to-date 30 days buy-or-sell advice on the venture is Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Calavo Growers. Please refer to our Terms of Use for any information regarding our disclosure principles.

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