Cava Group (CAVA) closed at $63.42 in the latest trading session, marking a -2.64% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.29% for the day. Elsewhere, the Dow lost 0.37%, while the tech-heavy Nasdaq lost 0.34%.
Heading into today, shares of the Mediterranean restaurant chain had lost 2.81% over the past month, lagging the Retail-Wholesale sector's gain of 0.17% and the S&P 500's gain of 3.08%.
Analysts and investors alike will be keeping a close eye on the performance of Cava Group in its upcoming earnings disclosure. In that report, analysts expect Cava Group to post earnings of $0.14 per share. This would mark a year-over-year decline of 6.67%. Alongside, our most recent consensus estimate is anticipating revenue of $294.91 million, indicating a 20.95% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.56 per share and revenue of $1.18 billion. These totals would mark changes of +33.33% and +22.91%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Cava Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Cava Group is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Cava Group is at present trading with a Forward P/E ratio of 116.32. This valuation marks a premium compared to its industry average Forward P/E of 22.87.
It's also important to note that CAVA currently trades at a PEG ratio of 3.26. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 2.27.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 183, this industry ranks in the bottom 26% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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