Cava Group (CAVA) closed at $62.55 in the latest trading session, marking a -5.68% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.5%. Elsewhere, the Dow saw an upswing of 0.64%, while the tech-heavy Nasdaq appreciated by 0.43%.
Shares of the Mediterranean restaurant chain witnessed a gain of 10.26% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 5.24%, and the S&P 500's gain of 0.18%.
Investors will be eagerly watching for the performance of Cava Group in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.04, reflecting a 20% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $267.83 million, indicating a 17.78% upward movement from the same quarter last year.
CAVA's full-year Zacks Consensus Estimates are calling for earnings of $0.53 per share and revenue of $1.17 billion. These results would represent year-over-year changes of +26.19% and 0%, respectively.
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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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.
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. Over the past month, there's been a 1.14% fall in the Zacks Consensus EPS estimate. Cava Group presently features a Zacks Rank of #4 (Sell).
Investors should also note Cava Group's current valuation metrics, including its Forward P/E ratio of 112.89. This expresses a premium compared to the average Forward P/E of 20.26 of its industry.
It is also worth noting that CAVA currently 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. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.14.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 202, which puts it in the bottom 18% of all 250+ industries.
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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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