The latest trading session saw Cava Group (CAVA) ending at $81.30, denoting a +1.16% adjustment from its last day's close. This move lagged the S&P 500's daily gain of 2.51%. On the other hand, the Dow registered a gain of 2.66%, and the technology-centric Nasdaq increased by 2.71%.
Shares of the Mediterranean restaurant chain witnessed a loss of 11.03% over the previous month, trailing the performance of the Retail-Wholesale sector with its loss of 6.97% and the S&P 500's loss of 8.86%.
The investment community will be paying close attention to the earnings performance of Cava Group in its upcoming release. The company is expected to report EPS of $0.14, up 16.67% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $330.56 million, reflecting a 27.63% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.55 per share and revenue of $1.19 billion, which would represent changes of +30.95% and +23.92%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to 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 company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.72% rise in the Zacks Consensus EPS estimate. Cava Group is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Cava Group is currently being traded at a Forward P/E ratio of 145.47. This represents a premium compared to its industry's average Forward P/E of 20.75.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 203, placing it within the bottom 19% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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