In the latest close session, Cava Group (CAVA) was down 1.23% at $53.64. This change lagged the S&P 500's 0.6% gain on the day. Meanwhile, the Dow gained 0.83%, and the Nasdaq, a tech-heavy index, added 0.64%.
Coming into today, shares of the Mediterranean restaurant chain had gained 0.57% in the past month. In that same time, the Retail-Wholesale sector lost 1.58%, while the S&P 500 gained 1.34%.
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 $0.12 per share. This would mark no growth from the year-ago period. In the meantime, our current consensus estimate forecasts the revenue to be $357.82 million, indicating a 22.44% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.55 per share and revenue of $1.51 billion. These totals would mark changes of +1.85% and +27.72%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Cava Group. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% higher. Cava Group currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Cava Group currently has a Forward P/E ratio of 99.2. This expresses a premium compared to the average Forward P/E of 20.1 of its industry.
One should further note that CAVA currently holds a PEG ratio of 4.21. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.74 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 103, putting it in the top 42% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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CAVA Group, Inc. (CAVA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).