Calavo Growers, Inc. (CVGW) — This small-cap distributor of avocados and other perishable commodities supplies food distributors, produce wholesalers, supermarkets, convenience stores and restaurants around the world.
Benzinga highlighted CVGW stock as a way to play America’s growing hunger for organic food. It was also recently mentioned as a top choice in the industry by Investor’s Business Daily, with the author noting its impressive performance in the face of the recent market rout. Finally, 24/7 Wall Street featured CVGW stock on its list of “10 Stocks That Have Ignored the Recent Massive Sell-Off.”
This may seem like an odd choice for the Trade of the Day. However, stocks that run counter to massive sell-offs tend to do well. So, as a strictly technical recommendation, CVGW stock may be considered by traders who are comfortable making a highly speculative bet.
CVGW stock broke from a double-top in March at about $44. After a series of bullish step-ups, it achieved a new high on Thursday. In each of the past four days, volume has been very high, and Thursday’s volume was more than triple the daily average with over 333,000 shares traded.
Buyers drove CVGW stock to its second consecutive high this week following a jump from the bullish trendline at about $53 and its 50-day moving average at just under $54.
I am not setting a price objective or buy point for CVGW stock. But I did want to bring it to Trade of the Day readers’ attention as an extraordinary performer in what has been a treacherous week of trading.
