Calavo Growers Inc is a leading company in the fresh and processed avocado and other produce markets, focusing on the sourcing, ripening, packing, and distribution of high-quality avocados and related products. The company operates in multiple segments, including fresh avocado distribution, processed avocado products, and food service and retail distribution, establishing strong connections with growers and retailers. By prioritizing innovation and sustainability, Calavo Growers aims to meet the growing consumer demand for healthy and convenient food options while delivering excellent service and quality. Through its extensive supply chain network, the company is committed to providing fresh produce year-round, ensuring that customers have access to an array of nutritious offerings. Read More
Fresh produce company Calavo Growers (NASDAQ:CVGW) fell short of the markets revenue expectations in Q3 CY2025, with sales falling 26.6% year on year to $124.7 million. Its non-GAAP profit of $0.25 per share was 32.4% below analysts’ consensus estimates. Stock surged from Mission Produce's acquisition announcement.
Fresh produce company Calavo Growers (NASDAQ:CVGW)
will be announcing earnings results this Wednesday after market hours. Here’s what investors should know.
The Russell 2000 (^RUT) is packed with potential breakout stocks, thanks to its focus on smaller companies with high growth potential.
However, smaller size also means these businesses often lack the resilience and financial flexibility of large-cap firms, making careful selection crucial.
Consumer staples are considered safe havens in turbulent markets due to their inelastic demand profiles. On the other hand, they usually underperform during bull runs,
and this paradigm has rung true over the past six months as the sector’s -13% decline paled in comparison to the S&P 500’s 9.9% gain.
The stocks featured in this article are seeing some big returns.
Over the past month, they’ve outpaced the market due to some combination of positive news, upbeat results, or supportive macro developments. As such, investors are taking notice and bidding up shares.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Over the last six months, Calavo’s shares have sunk to $20.33, producing a disappointing 12.3% loss - a stark contrast to the S&P 500’s 13.4% gain. This was partly due to its softer quarterly results and might have investors contemplating their next move.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead.
They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Value investing has created more billionaires than any other strategy, like Warren Buffett, who built his fortune by purchasing wonderful businesses at reasonable prices.
But these hidden gems are few and far between - many stocks that appear cheap often stay that way because they face structural issues.
Shares of fresh produce company Calavo Growers (NASDAQ:CVGW)
fell 4.8% in the afternoon session after the stock's weak momentum continued as the company announced its longtime CEO, Lee Cole, would retire. The company's longtime leader was set to step down on December 8 after decades of service. Board member and former Chief Financial Officer, John Lindeman, was appointed to take over as the new president and CEO. Lindeman was also set to continue to serve on the company's board of directors. The departure of a long-serving leader can create uncertainty for investors regarding a company's future direction, which likely contributed to the stock's decline.
Looking back on perishable food stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Calavo (NASDAQ:CVGW) and its peers.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments.
Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.
A number of stocks fell in the afternoon session after markets pulled back, reversing early gains, as investor sentiment remained cautious despite a softer-than-expected inflation reading.
Fresh produce company Calavo Growers (NASDAQ:CVGW) missed Wall Street’s revenue expectations in Q2 CY2025, with sales flat year on year at $178.8 million. Its non-GAAP profit of $0.57 per share was 5.6% above analysts’ consensus estimates.
