Cava Group (CAVA) closed the most recent trading day at $62.61, moving -1.28% from the previous trading session. This change lagged the S&P 500's daily loss of 0.5%. Meanwhile, the Dow experienced a drop of 0.38%, and the technology-dominated Nasdaq saw a decrease of 0.5%.
The Mediterranean restaurant chain's stock has dropped by 6.38% in the past month, falling short of the Retail-Wholesale sector's gain of 0.66% and the S&P 500's gain of 2.74%.
The upcoming earnings release of Cava Group will be of great interest to investors. 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%. Meanwhile, the latest consensus estimate predicts the revenue to be $294.91 million, indicating a 20.95% increase compared to the same quarter of the previous 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.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cava Group. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Cava Group possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Cava Group is currently exchanging hands at a Forward P/E ratio of 113.25. This expresses a premium compared to the average Forward P/E of 22.91 of its industry.
Investors should also note that CAVA has a PEG ratio of 3.17 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAVA's industry had an average PEG ratio of 2.28 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 172, placing it within the bottom 31% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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