5-Star Stocks Poised to Pop: Calavo Growers

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, avocado and guacamole seller Calavo Growers (NAS: CVGW) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Calavo's business and see what CAPS investors are saying about the stock right now.

Calavo facts

Headquarters (founded)

Santa Paula, Calif. (1924)

Market Cap

$406.4 million

Industry

Packaged foods and meats

Trailing-12-Month Revenue

$548.6 million

Management

Chairman/CEO Lecil Cole
CFO Arthur Bruno

Return on Equity (average, past 3 years)

16.5%

Cash/Debt

$3.6 million / $51.3 million

Dividend Yield

2%

Competitors

Chiquita Brands International
Dole Food
Fresh Del Monte Produce


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 136 members who have rated Calavo believe the stock will outperform the S&P 500 going forward.

A few months ago, one of those Fools, johnnykillz, succinctly summed up the Calavo bull case:

A virtual monopoly on Hass avocados now with diversified sourcing ... to counteract weather impacts on crop yields. A high dividend, a stake on undervalued Limoneira, and expansion into higher-margin processed foods... Solid long-term food play that will also benefit from changing diets and demographic expansion of Latin population in America.

Of course, despite its strong five-star rating, Calavo may not be your top choice. If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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