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Cava Group (CAVA) Recently Broke Out Above the 20-Day Moving Average

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From a technical perspective, Cava Group (CAVA - Free Report) is looking like an interesting pick, as it just reached a key level of support. CAVA recently overtook the 20-day moving average, and this suggests a short-term bullish trend.

The 20-day simple moving average is a popular investing tool. Traders like this SMA because it offers a look back at a stock's price over a shorter period and helps smooth out price fluctuations. The 20-day can also show more trend reversal signals than longer-term moving averages.

The 20-day moving average can show signals that are similar to other SMAs as well. If a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

Shares of CAVA have been moving higher over the past four weeks, up 18.8%. Plus, the company is currently a Zacks Rank #2 (Buy) stock, suggesting that CAVA could be poised for a continued surge.

The bullish case only gets stronger once investors take into account CAVA's positive earnings estimate revisions. There have been 3 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on CAVA for more gains in the near future.

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