In the latest close session, Cava Group (CAVA) was up +1.81% at $70.86. The stock's change was more than the S&P 500's daily gain of 0.65%. On the other hand, the Dow registered a gain of 0.48%, and the technology-centric Nasdaq increased by 0.82%.
Shares of the Mediterranean restaurant chain witnessed a gain of 32.19% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 4.29%, and the S&P 500's gain of 1.15%.
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 $0.03, showcasing a 40% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $266.99 million, up 17.41% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.54 per share and a revenue of $1.17 billion, representing changes of +28.57% and 0%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cava Group. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.24% lower within the past month. Currently, Cava Group is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, Cava Group is currently exchanging hands at a Forward P/E ratio of 117.11. This denotes a premium relative to the industry average Forward P/E of 19.87.
We can additionally observe that CAVA currently boasts a PEG ratio of 3.54. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 2.02 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 210, which puts it in the bottom 15% 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.
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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