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Cava Group (CAVA) Advances While Market Declines: Some Information for Investors
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Cava Group (CAVA - Free Report) closed at $64.71 in the latest trading session, marking a +2.18% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq lost 0.76%.
The Mediterranean restaurant chain's shares have seen an increase of 1.26% over the last month, surpassing the Retail-Wholesale sector's loss of 4.08% and the S&P 500's gain of 1.14%.
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 $0.13, down 13.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $294.31 million, up 20.71% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.55 per share and revenue of $1.18 billion, indicating changes of +30.95% and +22.7%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Cava Group should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.02% lower. Cava Group is currently a Zacks Rank #4 (Sell).
Looking at valuation, Cava Group is presently trading at a Forward P/E ratio of 114.25. This expresses a premium compared to the average Forward P/E of 22.84 of its industry.
We can also see that CAVA currently has a PEG ratio of 3.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.24.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Cava Group (CAVA) Advances While Market Declines: Some Information for Investors
Cava Group (CAVA - Free Report) closed at $64.71 in the latest trading session, marking a +2.18% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.16%. At the same time, the Dow added 0.44%, and the tech-heavy Nasdaq lost 0.76%.
The Mediterranean restaurant chain's shares have seen an increase of 1.26% over the last month, surpassing the Retail-Wholesale sector's loss of 4.08% and the S&P 500's gain of 1.14%.
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 $0.13, down 13.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $294.31 million, up 20.71% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.55 per share and revenue of $1.18 billion, indicating changes of +30.95% and +22.7%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Cava Group should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.02% lower. Cava Group is currently a Zacks Rank #4 (Sell).
Looking at valuation, Cava Group is presently trading at a Forward P/E ratio of 114.25. This expresses a premium compared to the average Forward P/E of 22.84 of its industry.
We can also see that CAVA currently has a PEG ratio of 3.2. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Retail - Restaurants industry was having an average PEG ratio of 2.24.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 16% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.