Cava Group (CAVA) ended the recent trading session at $91.80, demonstrating a +2.08% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.78%. Elsewhere, the Dow saw an upswing of 1.14%, while the tech-heavy Nasdaq appreciated by 0.61%.
Coming into today, shares of the Mediterranean restaurant chain had gained 21.15% in the past month. In that same time, the Retail-Wholesale sector gained 5.49%, while the S&P 500 gained 5.88%.
The upcoming earnings release of Cava Group will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.13, reflecting a 23.53% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $286.82 million, up 22.84% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.58 per share and a revenue of $1.19 billion, representing changes of +38.1% and +23.86%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cava Group. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 1.59% fall in the Zacks Consensus EPS estimate. Cava Group is currently a Zacks Rank #4 (Sell).
From a valuation perspective, Cava Group is currently exchanging hands at a Forward P/E ratio of 156.4. This represents a premium compared to its industry average Forward P/E of 21.45.
We can also see that CAVA currently has a PEG ratio of 4.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 2.62.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 160, which puts it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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CAVA Group, Inc. (CAVA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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