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Cava Group (CAVA) Just Overtook the 20-Day Moving Average

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Cava Group (CAVA - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, CAVA crossed above the 20-day moving average, suggesting 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.

Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.

CAVA could be on the verge of another rally after moving 12.7% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.

Looking at CAVA's earnings estimate revisions, investors will be even more convinced of the bullish uptrend. There have been 7 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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