CAVA Group, Inc. (NYSE:CAVA) is in focus Tuesday as the company prepares to report fourth-quarter earnings after the market closes.
Fourth-Quarter Expectations, Recent Performance And What To Watch
Cava is expected to report earnings per share of 3 cents on revenue of $267.92 million. The company has topped both revenue and earnings estimates in two of the last four quarters.
In its most recent quarter, reported Nov. 4, Cava posted earnings per share of 12 cents, narrowly missing the consensus estimate of 13 cents. Revenue came in at $292.24 million, slightly below expectations of $292.81 million.
Investors should keep an eye on same-store sales growth, which is crucial for assessing the health of Cava’s existing locations. Additionally, watch for any shifts in customer traffic patterns, as these can provide insight into consumer demand and brand loyalty. Lastly, inventory levels will be important to monitor, as they can indicate how well Cava is managing its supply chain amid growing revenue expectations.
Technical Picture Shows Signs Of Stabilization
Over the past year, Cava has seen a significant decline of 34.42%. Currently, the stock is trading at $68.29, which is 4.6% above its 20-day SMA and 14.6% above its 100-day SMA, yet it remains 1.2% below its 200-day SMA. This positioning suggests a mixed short-term outlook but indicates some resilience above shorter-term moving averages. The stock’s price is also within a broader 52-week range, having peaked at $119.01 and dipped to a low of $43.41.
The RSI stands at 55.54, indicating a neutral market momentum, while the MACD presents a bullish signal, being above both its signal line and zero line. These indicators suggest that while the stock is not experiencing strong momentum, it is stable with potential for upward movement if market conditions improve.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Cava, highlighting its strengths and weaknesses compared to the broader market:
- Value: Weak (Score: 15.84) — The stock is trading at a steep premium relative to peers.
- Momentum: Weak (Score: 14.23) — Stock is underperforming the broader market.
The Verdict: Cava’s Benzinga Edge signal reveals a challenging position in the market. With low scores in both Value and Momentum, the stock is currently facing headwinds that may affect investor sentiment and stock performance.
Cava Stock Remains Flat
CAVA Price Action: At the time of writing, Cava shares are trading flat at $68.01, according to data from Benzinga Pro.
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