In the latest close session, Cava Group (CAVA) was down 1.42% at $63.79. The stock fell short of the S&P 500, which registered a gain of 0.4% for the day. At the same time, the Dow lost 0.04%, and the tech-heavy Nasdaq gained 0.66%.
The Mediterranean restaurant chain's shares have seen an increase of 2.58% over the last month, surpassing the Retail-Wholesale sector's loss of 3.61% and the S&P 500's gain of 1.02%.
Market participants will be closely following the financial results of Cava Group in its upcoming release. The company is forecasted to report an EPS of $0.13, showcasing a 13.33% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $294.31 million, indicating a 20.71% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.55 per share and a revenue of $1.18 billion, signifying shifts of +30.95% and +22.7%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Cava Group. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.02% lower. Cava Group presently features a Zacks Rank of #4 (Sell).
In the context of valuation, Cava Group is at present trading with a Forward P/E ratio of 116.75. For comparison, its industry has an average Forward P/E of 23.11, which means Cava Group is trading at a premium to the group.
Meanwhile, CAVA's PEG ratio is currently 3.27. 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. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.33.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 210, this industry ranks in the bottom 15% of all industries, numbering over 250.
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.
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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