Cava Group (CAVA) ended the recent trading session at $54.10, demonstrating a +1.81% change from the preceding day's closing price. This change outpaced the S&P 500's 0.25% loss on the day. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq gained 0.24%.
The Mediterranean restaurant chain's shares have seen a decrease of 13% over the last month, not keeping up with the Retail-Wholesale sector's loss of 6.54% and the S&P 500's loss of 0.42%.
The investment community will be closely monitoring the performance of Cava Group in its forthcoming earnings report. The company's upcoming EPS is projected at $0.12, signifying steadiness compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $357.61 million, up 22.37% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.55 per share and a revenue of $1.51 billion, signifying shifts of +1.85% and +27.72%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cava Group. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.1% downward. Cava Group is currently sporting a Zacks Rank of #3 (Hold).
Looking at valuation, Cava Group is presently trading at a Forward P/E ratio of 97.36. This denotes a premium relative to the industry average Forward P/E of 20.7.
We can additionally observe that CAVA currently boasts a PEG ratio of 4.13. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.76 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 172, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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CAVA Group, Inc. (CAVA): Free Stock Analysis Report
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