Cava Group (CAVA) closed the most recent trading day at $94.23, moving -1.52% from the previous trading session. This change lagged the S&P 500's 0.12% gain on the day. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.2%.
The Mediterranean restaurant chain's shares have seen an increase of 26.86% over the last month, surpassing the Retail-Wholesale sector's gain of 12.69% and the S&P 500's gain of 9.3%.
The investment community will be paying close attention to the earnings performance of Cava Group in its upcoming release. The company is forecasted to report an EPS of $0.17, showcasing a 22.73% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $417.46 million, up 25.81% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.51 per share and a revenue of $1.46 billion, indicating changes of -5.56% and +23.72%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Cava Group. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.57% higher. Currently, Cava Group is carrying a Zacks Rank of #3 (Hold).
Investors should also note Cava Group's current valuation metrics, including its Forward P/E ratio of 186.94. This signifies a premium in comparison to the average Forward P/E of 19.96 for its industry.
Meanwhile, CAVA's PEG ratio is currently 7.92. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.97.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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CAVA Group, Inc. (CAVA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).