Back to top

Image: Bigstock

Cava Group (CAVA) Stock Moves -0.13%: What You Should Know

Read MoreHide Full Article

Cava Group (CAVA - Free Report) ended the recent trading session at $85.19, demonstrating a -0.13% swing from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily loss of 0.88%. At the same time, the Dow added 0.08%, and the tech-heavy Nasdaq lost 1.95%.

The Mediterranean restaurant chain's stock has dropped by 6.8% in the past month, falling short of the Retail-Wholesale sector's gain of 1.55% and the S&P 500's gain of 5.11%.

The investment community will be closely monitoring the performance of Cava Group in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.12, reflecting a 42.86% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $219.47 million, showing a 26.94% escalation compared to the year-ago quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.34 per share and a revenue of $903.42 million, representing changes of +61.9% and +23.98%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Cava Group. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 no change in the Zacks Consensus EPS estimate. Cava Group is holding a Zacks Rank of #1 (Strong Buy) right now.

In terms of valuation, Cava Group is presently being traded at a Forward P/E ratio of 248.79. For comparison, its industry has an average Forward P/E of 18.8, which means Cava Group is trading at a premium to the group.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 87, finds itself in the top 35% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


CAVA Group, Inc. (CAVA) - free report >>

Published in