In the latest close session, Cava Group (CAVA) was down 1.68% at $59.60. This change lagged the S&P 500's daily gain of 0.54%. Meanwhile, the Dow experienced a rise of 1.05%, and the technology-dominated Nasdaq saw an increase of 0.56%.
The Mediterranean restaurant chain's stock has climbed by 0.12% in the past month, falling short of the Retail-Wholesale sector's gain of 3.66% and the S&P 500's gain of 0.74%.
Analysts and investors alike will be keeping a close eye on the performance of Cava Group in its upcoming earnings disclosure. In that report, analysts expect Cava Group to post earnings of $0.03 per share. This would mark a year-over-year decline of 40%. Our most recent consensus estimate is calling for quarterly revenue of $268.17 million, up 17.93% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.52 per share and revenue of $1.17 billion. These totals would mark changes of +23.81% and 0%, respectively, from last year.
Any recent changes to analyst estimates for Cava Group should also be noted by investors. 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 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.62% 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 108.98. Its industry sports an average Forward P/E of 19, so one might conclude that Cava Group is trading at a premium comparatively.
Meanwhile, CAVA's PEG ratio is currently 4.45. 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 of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.06.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 205, placing it within the bottom 17% of over 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.
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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