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Cava Group (CAVA) Stock Dips While Market Gains: Key Facts

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The most recent trading session ended with Cava Group (CAVA - Free Report) standing at $138, reflecting a -0.34% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.16%. Meanwhile, the Dow lost 0.37%, and the Nasdaq, a tech-heavy index, added 0.78%.

The Mediterranean restaurant chain's stock has climbed by 11.81% in the past month, exceeding the Retail-Wholesale sector's loss of 0.07% and the S&P 500's gain of 1.67%.

Investors will be eagerly watching for the performance of Cava Group in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 12, 2024. The company is forecasted to report an EPS of $0.11, showcasing an 83.33% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $234.86 million, up 33.79% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.43 per share and revenue of $940.81 million, indicating changes of +104.76% and +29.11%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Cava Group should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.68% increase. Cava Group is currently a Zacks Rank #1 (Strong Buy).

Looking at valuation, Cava Group is presently trading at a Forward P/E ratio of 319.9. This denotes a premium relative to the industry's average Forward P/E of 23.36.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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