Back to top

Image: Bigstock

Cava Group (CAVA) Dips More Than Broader Market: What You Should Know

Read MoreHide Full Article

Cava Group (CAVA - Free Report) closed the most recent trading day at $130.24, moving -1.23% from the previous trading session. This move lagged the S&P 500's daily loss of 0.21%. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq decreased by 0.05%.

The Mediterranean restaurant chain's shares have seen an increase of 8.75% over the last month, surpassing the Retail-Wholesale sector's gain of 7.41% and the S&P 500's gain of 5.94%.

Investors will be eagerly watching for the performance of Cava Group in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.11, marking an 83.33% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $233.7 million, up 33.12% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.43 per share and a revenue of $938.54 million, signifying shifts of +104.76% and +28.8%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Cava Group. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Cava Group presently features a Zacks Rank of #2 (Buy).

From a valuation perspective, Cava Group is currently exchanging hands at a Forward P/E ratio of 309.74. This expresses a premium compared to the average Forward P/E of 21.09 of its industry.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 158, putting it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much 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