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Cava Group (CAVA) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest trading session, Cava Group (CAVA - Free Report) closed at $85.56, marking a -2.74% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.3%. Elsewhere, the Dow saw a downswing of 0.46%, while the tech-heavy Nasdaq depreciated by 0.38%.
The Mediterranean restaurant chain's stock has climbed by 4.44% in the past month, exceeding the Retail-Wholesale sector's gain of 2.65% and the S&P 500's gain of 3.64%.
The investment community will be closely monitoring the performance of Cava Group in its forthcoming earnings report. On that day, Cava Group is projected to report earnings of $0.13 per share, which would represent a year-over-year decline of 23.53%. Meanwhile, our latest consensus estimate is calling for revenue of $286.56 million, up 22.73% from the prior-year quarter.
CAVA's full-year Zacks Consensus Estimates are calling for earnings of $0.58 per share and revenue of $1.19 billion. These results would represent year-over-year changes of +38.1% and +23.83%, respectively.
It is also important to note the recent changes to analyst estimates for Cava Group. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.35% decrease. As of now, Cava Group holds a Zacks Rank of #4 (Sell).
From a valuation perspective, Cava Group is currently exchanging hands at a Forward P/E ratio of 152.99. Its industry sports an average Forward P/E of 20.11, so one might conclude that Cava Group is trading at a premium comparatively.
One should further note that CAVA currently holds a PEG ratio of 4.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Retail - Restaurants industry stood at 2.5 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 165, placing it within the bottom 34% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Cava Group (CAVA) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Cava Group (CAVA - Free Report) closed at $85.56, marking a -2.74% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.3%. Elsewhere, the Dow saw a downswing of 0.46%, while the tech-heavy Nasdaq depreciated by 0.38%.
The Mediterranean restaurant chain's stock has climbed by 4.44% in the past month, exceeding the Retail-Wholesale sector's gain of 2.65% and the S&P 500's gain of 3.64%.
The investment community will be closely monitoring the performance of Cava Group in its forthcoming earnings report. On that day, Cava Group is projected to report earnings of $0.13 per share, which would represent a year-over-year decline of 23.53%. Meanwhile, our latest consensus estimate is calling for revenue of $286.56 million, up 22.73% from the prior-year quarter.
CAVA's full-year Zacks Consensus Estimates are calling for earnings of $0.58 per share and revenue of $1.19 billion. These results would represent year-over-year changes of +38.1% and +23.83%, respectively.
It is also important to note the recent changes to analyst estimates for Cava Group. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.35% decrease. As of now, Cava Group holds a Zacks Rank of #4 (Sell).
From a valuation perspective, Cava Group is currently exchanging hands at a Forward P/E ratio of 152.99. Its industry sports an average Forward P/E of 20.11, so one might conclude that Cava Group is trading at a premium comparatively.
One should further note that CAVA currently holds a PEG ratio of 4.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Retail - Restaurants industry stood at 2.5 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 165, placing it within the bottom 34% of over 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.