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Cava Group (CAVA) Declines More Than Market: Some Information for Investors

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The most recent trading session ended with Cava Group (CAVA - Free Report) standing at $126.84, reflecting a -0.47% shift from the previouse trading day's closing. This change lagged the S&P 500's daily loss of 0.19%. Elsewhere, the Dow lost 0.7%, while the tech-heavy Nasdaq added 0.04%.

Heading into today, shares of the Mediterranean restaurant chain had gained 7.91% over the past month, outpacing the Retail-Wholesale sector's gain of 6.04% and the S&P 500's gain of 1.95% in that time.

The investment community will be closely monitoring the performance of Cava Group in its forthcoming earnings report. The company is expected to report EPS of $0.11, up 83.33% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $233.7 million, up 33.12% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.43 per share and a revenue of $938.54 million, indicating changes of +104.76% and +28.8%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for Cava Group. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 6.05% rise in the Zacks Consensus EPS estimate. Right now, Cava Group possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Cava Group is currently exchanging hands at a Forward P/E ratio of 299.36. For comparison, its industry has an average Forward P/E of 20.99, which means Cava Group is trading at a premium to the group.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 167, putting it in the bottom 34% 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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