CVGW Should I Buy
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Calavo Growers Inc (CVGW) is not a strong buy at the moment for a beginner investor with a long-term strategy. The company's financial performance is weak, with significant declines in revenue, net income, and EPS. Additionally, there are no strong positive technical or trading signals, and the stock's recent performance and analyst sentiment suggest limited upside potential in the near term. Given the lack of compelling catalysts and the absence of strong trading signals, holding off on investing in this stock is advisable.
The MACD histogram is negative (-0.149), indicating bearish momentum, though it is contracting. RSI is neutral at 58.311, suggesting no clear overbought or oversold conditions. Moving averages are converging, showing no strong directional trend. Key support and resistance levels are Pivot: 25.308, R1: 25.769, S1: 24.848, R2: 26.053, S2: 24.564, indicating limited price movement.
Hedge funds have increased their buying activity by 302.03% over the last quarter, indicating some institutional interest. The announced acquisition by Mission Produce could stabilize earnings over time through integration synergies.
The company's Q4 financial performance was significantly weak, with revenue down 26.64% YoY, net income down 2846.04% YoY, and EPS down 2200.00% YoY. Gross margin also declined. Analysts have lowered price targets, and there are no recent news or congress trading data to support a positive outlook.
In Q4 2025, revenue dropped to $124.68M (-26.64% YoY), net income dropped to $3.82M (-2846.04% YoY), and EPS dropped to $0.21 (-2200.00% YoY). Gross margin also declined to 9.34% (-2.51% YoY). Overall, the financial performance shows significant weakness.
Stephens lowered the price target from $28 to $27 and maintained an Equal Weight rating. The firm noted weaker Fresh pricing and volume but sees the acquisition by Mission Produce as a logical outcome with potential long-term benefits.
