In the latest trading session, Cava Group (CAVA) closed at $61.67, marking a +2.09% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.34%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%.
Shares of the Mediterranean restaurant chain witnessed a loss of 7.87% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 0.41%, and the S&P 500's gain of 3.54%.
Market participants will be closely following the financial results of Cava Group in its upcoming release. The company is predicted to post an EPS of $0.14, indicating a 6.67% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $294.91 million, up 20.95% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.56 per share and revenue of $1.18 billion, which would represent changes of +33.33% and +22.91%, respectively, from the prior 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering 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).
Investors should also note Cava Group's current valuation metrics, including its Forward P/E ratio of 107.88. This indicates a premium in contrast to its industry's Forward P/E of 23.52.
It's also important to note that CAVA currently trades at a PEG ratio of 3.02. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.35 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 197, which puts it in the bottom 21% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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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