In the latest trading session, Cava Group (CAVA) closed at $69.74, marking a -3.02% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.45% for the day. Elsewhere, the Dow saw a downswing of 0.25%, while the tech-heavy Nasdaq depreciated by 1.16%.
Shares of the Mediterranean restaurant chain have depreciated by 2.32% over the course of the past month, underperforming the Retail-Wholesale sector's loss of 0.18%, and the S&P 500's gain of 2.14%.
The investment community will be closely monitoring the performance of Cava Group in its forthcoming earnings report. On that day, Cava Group is projected to report earnings of $0.17 per share, which would represent year-over-year growth of 6.25%. Our most recent consensus estimate is calling for quarterly revenue of $353.73 million, up 26.06% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.55 per share and revenue of $1.49 billion, which would represent changes of +1.85% and +26.21%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cava Group. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate remained stagnant. Cava Group presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Cava Group is holding a Forward P/E ratio of 131.95. This valuation marks a premium compared to its industry average Forward P/E of 20.01.
Meanwhile, CAVA's PEG ratio is currently 4.93. 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. CAVA's industry had an average PEG ratio of 1.98 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 206, positioning it in the bottom 17% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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
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