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Cava Group (CAVA) Ascends But Remains Behind Market: Some Facts to Note

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Cava Group (CAVA - Free Report) closed at $78.63 in the latest trading session, marking a +0.15% move from the prior day. This change lagged the S&P 500's 1.17% gain on the day. Meanwhile, the Dow gained 0.88%, and the Nasdaq, a tech-heavy index, added 1.4%.

Heading into today, shares of the Mediterranean restaurant chain had gained 24.9% over the past month, outpacing the Retail-Wholesale sector's gain of 2.37% and the S&P 500's gain of 2.46% in that time.

The investment community will be closely monitoring the performance of Cava Group in its forthcoming earnings report. The company is scheduled to release its earnings on May 28, 2024.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.25 per share and a revenue of $874 million, signifying shifts of +19.05% and +19.94%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Cava Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 2.37% higher. Cava Group is currently a Zacks Rank #2 (Buy).

In the context of valuation, Cava Group is at present trading with a Forward P/E ratio of 317.67. This represents a premium compared to its industry's average Forward P/E of 19.89.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 168, placing it within the bottom 34% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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