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

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In the latest close session, Cava Group (CAVA - Free Report) was down 2.38% at $89.86. This change lagged the S&P 500's daily gain of 0.14%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq appreciated by 0.27%.

Prior to today's trading, shares of the Mediterranean restaurant chain had gained 23.44% outpaced the Retail-Wholesale sector's gain of 2.13% and the S&P 500's gain of 3.97%.

Analysts and investors alike will be keeping a close eye on the performance of Cava Group in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.14, indicating a 17.65% decline compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $287.93 million, up 23.31% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $0.58 per share and revenue of $1.19 billion, which would represent changes of +38.1% and +23.99%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Cava Group. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 moved 0.31% lower. Right now, Cava Group possesses a Zacks Rank of #3 (Hold).

Digging into valuation, Cava Group currently has a Forward P/E ratio of 158.03. This valuation marks a premium compared to its industry average Forward P/E of 21.87.

Also, we should mention that CAVA has a PEG ratio of 4.32. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 2.64 at yesterday's closing price.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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