Calavo Stock Story

CVGW -  USA Stock  

USD 42.02  1.39  3.42%

As many rational traders are trying to avoid consumer defensive space, it makes sense to focus on Calavo Growers a little further and understand how it stands against AdvancePierre Foods and other similar entities. We are going to recap some of the competitive aspects of both Calavo and AdvancePierre.
Published over three months ago
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Calavo Growers Current Investor Sentiment

Investor biases related to Calavo Growers' public news can be used to forecast risks associated with investment in Calavo. The trend in average sentiment can be used to explain how an investor holding Calavo can time the market purely based on public headlines and social activities around Calavo Growers. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Calavo Growers' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Calavo Growers' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Calavo Growers' news discussions. The higher the estimate score, the more favorable is the investor's outlook on Calavo Growers.

Calavo Growers Maximum Pain Price across 2022-07-15 Option Contracts

Calavo Growers' options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Calavo Growers close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Calavo Growers' options.
Should you trade your AdvancePierre Foods (NYSE:APFH) and Calavo Growers (NASDAQ:CVGW) positions after a boost?
By analyzing existing technical and fundamental indicators between Calavo Growers and AdvancePierre, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in AdvancePierre with a short position in Calavo Growers. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Calavo Growers has an asset utilization ratio of 323.24 percent. This indicates that the company is making $3.23 for each dollar of assets. An increasing asset utilization means that Calavo Growers is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Calavo Growers's Liquidity

Calavo Growers financial leverage refers to using borrowed capital as a funding source to finance Calavo Growers ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Calavo Growers financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Calavo Growers's total debt and its cash.

How does Calavo utilize 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 15.61 Million in 2021

Chances of Calavo Growers sophisticated investors to go out of control

The kurtosis is down to 4.4 as of today. Calavo Growers exhibits very low volatility with skewness of -0.66 and kurtosis of 4.4. However, we advise investors to further study Calavo Growers technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Calavo Growers' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Calavo Growers' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Calavo Growers Implied Volatility

Calavo Growers' implied volatility exposes the market's sentiment of Calavo Growers stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Calavo Growers' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Calavo Growers stock will not fluctuate a lot when Calavo Growers' options are near their expiration.

Our Bottom Line On Calavo Growers

While some firms in the packaged foods industry are either recovering or due for a correction, Calavo may not be as strong as the others in terms of longer-term growth potentials. To summarize, as of the 14th of March 2022, we believe that at this point, Calavo Growers is undervalued with low chance of financial distress within the next 2 years. Our current buy-or-sell advice on the venture is Hold.

Editorial Staff

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 Vlad Skutelnik 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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