In the latest trading session, Cava Group (CAVA) closed at $84.28, marking a -2.59% move from the previous day. This change lagged the S&P 500's 0.79% loss on the day. On the other hand, the Dow registered a loss of 0.94%, and the technology-centric Nasdaq decreased by 0.92%.
The Mediterranean restaurant chain's shares have seen an increase of 9.48% over the last month, surpassing the Retail-Wholesale sector's gain of 2.47% and the S&P 500's gain of 5.22%.
Analysts and investors alike will be keeping a close eye on the performance of Cava Group in its upcoming earnings disclosure. On that day, Cava Group is projected to report earnings of $0.14 per share, which would represent a year-over-year decline of 17.65%. In the meantime, our current consensus estimate forecasts the revenue to be $287.93 million, indicating a 23.31% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $0.58 per share and a revenue of $1.19 billion, demonstrating changes of +38.1% and +23.99%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Cava Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 0.31% fall in the Zacks Consensus EPS estimate. Cava Group currently has a Zacks Rank of #3 (Hold).
Investors should also note Cava Group's current valuation metrics, including its Forward P/E ratio of 148.53. This represents a premium compared to its industry average Forward P/E of 22.34.
Also, we should mention that CAVA has a PEG ratio of 4.06. 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 industry had an average PEG ratio of 2.57 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 36% of all 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.
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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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