Cava Group (CAVA) closed at $67.90 in the latest trading session, marking a +1.18% move from the prior day. This move outpaced the S&P 500's daily loss of 0.34%. Meanwhile, the Dow lost 0.94%, and the Nasdaq, a tech-heavy index, added 0.16%.
Coming into today, shares of the Mediterranean restaurant chain had gained 26.86% in the past month. In that same time, the Retail-Wholesale sector gained 2.04%, while the S&P 500 gained 1.19%.
The upcoming earnings release of Cava Group will be of great interest to investors. The company is predicted to post an EPS of $0.03, indicating a 40% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $266.49 million, up 17.19% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.54 per share and a revenue of $1.17 billion, indicating changes of +28.57% and 0%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cava Group. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.24% lower. At present, Cava Group boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Cava Group is currently trading at a Forward P/E ratio of 112.93. Its industry sports an average Forward P/E of 19.9, so one might conclude that Cava Group is trading at a premium comparatively.
Also, we should mention that CAVA has a PEG ratio of 3.41. 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. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.93.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 208, placing it within the bottom 16% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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