Cava Group (CAVA) closed the most recent trading day at $78.41, moving -1.12% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 1.57% for the day. Meanwhile, the Dow lost 0.84%, and the Nasdaq, a tech-heavy index, lost 2.15%.
Heading into today, shares of the Mediterranean restaurant chain had lost 1.42% over the past month, outpacing the Retail-Wholesale sector's loss of 11.13% and the S&P 500's loss of 12.16% in that time.
Investors will be eagerly watching for the performance of Cava Group in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.15, showcasing a 25% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $330.75 million, up 27.7% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.56 per share and revenue of $1.2 billion, which would represent changes of +33.33% and +24.12%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Cava Group. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, the Zacks Consensus EPS estimate has shifted 2.2% upward. At present, Cava Group boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Cava Group is presently being traded at a Forward P/E ratio of 142.56. This represents a premium compared to its industry's average Forward P/E of 20.95.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 179, finds itself in the bottom 28% echelons 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.
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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