In the latest trading session, Cava Group (CAVA) closed at $66.92, marking a -3.08% move from the previous day. The stock's change was less than the S&P 500's daily gain of 1.16%. On the other hand, the Dow registered a gain of 1.21%, and the technology-centric Nasdaq increased by 1.18%.
The stock of Mediterranean restaurant chain has risen by 16.34% in the past month, leading the Retail-Wholesale sector's gain of 3.08% and the S&P 500's loss of 0.42%.
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. In the meantime, our current consensus estimate forecasts the revenue to be $267 million, indicating a 17.42% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.53 per share and a revenue of $1.17 billion, representing changes of +26.19% and 0%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Cava Group. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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. The Zacks Consensus EPS estimate has moved 0.93% lower within the past month. Cava Group is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Cava Group has a Forward P/E ratio of 117.28 right now. This represents a premium compared to its industry average Forward P/E of 19.76.
Also, we should mention that CAVA has a PEG ratio of 3.55. 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 2.13 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 201, positioning it in the bottom 18% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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