In the latest trading session, Cava Group (CAVA) closed at $63.16, marking a +2.48% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.58%.
The stock of Mediterranean restaurant chain has fallen by 5.59% in the past month, lagging the Retail-Wholesale sector's loss of 2.75% and the S&P 500's gain of 3.68%.
Analysts and investors alike will be keeping a close eye on the performance of Cava Group in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.14, reflecting a 6.67% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $294.6 million, showing a 20.83% escalation compared to the year-ago quarter.
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 +22.85%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cava Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cava Group is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Cava Group's current valuation metrics, including its Forward P/E ratio of 110.05. This signifies a premium in comparison to the average Forward P/E of 22.59 for its industry.
It is also worth noting that CAVA currently has a PEG ratio of 3.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants industry had an average PEG ratio of 2.25 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 183, finds itself in the bottom 26% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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