Calavo Growers, Inc. (NASDAQ: CVGW) – February 5, 2017

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Calavo Growers, Inc. ($CVGW)

Calavo Growers, Inc. is an international consumer goods and farm products company. The company packages, and distributes avocados and other fruits. They also ship and distribute their fresh prepared food to restaurants, stores, and individual customers worldwide.  The market cap is $1.05B. The stock closed at $57.35 on Friday, February 3, 2017. The previous day’s close was $54.75 making a gain of $2.60 or 4.75%. As of Friday’s close, $CVGW is down -6.4% year-to-date and has an average volume of 226K shares traded daily.

Performance

  • 52 Week range:  Low of $46.56 (March 2016) and the High is $71.48 (September 2016)

  • 1 Month performance: -7%

  • 1-year performance: +19.9%

Moving Averages

–  50-day simple moving average (SMA): $58.47

–  100-day SMA: $60.95

–  200-day SMA: $61.04

Camtrading’s Opinion

What goes best with tortilla chips? Guacamole! With the kick-off of Super Bowl LI later this evening, I’m seeing reports that we should enjoy the relatively low prices of our avocados (the main ingredient in guacamole) because President Trump has implied to scrap the trade agreements between Mexico and the U.S. The President has proposed a 20% tariff on Mexican goods which could be enacted before next year’s Super Bowl LII.

Cavalo Growers is the brand that is recognized as the finest avocados in the world. A 20% tariff on avocados will most likely increase the price of guacamole. As for the stock, $CVGW is currently trading +23% above its 52-week low.  At current price levels, I’m seeing a support level around the $54 price range and resistance at $69. The trend in the last 5 years has been bullish for $CVGW. As for the trade, it’s hard to say what the effect will be of the tariffs on the stock, but I would keep an eye on the support and resistance levels.

Disclosure: I do not own stock in Calavo Growers, Inc. This article only expresses my opinion and is not a recommendation of the company. I started a new section on my blog where I do a quick analysis on companies. Check out my first one on Frontier Communications.

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