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Why Cava Group (CAVA) Outpaced the Stock Market Today
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In the latest close session, Cava Group (CAVA - Free Report) was up +1.28% at $89.18. The stock's change was more than the S&P 500's daily gain of 1.09%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq increased by 1.91%.
Coming into today, shares of the Mediterranean restaurant chain had gained 9.34% in the past month. In that same time, the Retail-Wholesale sector lost 5.56%, while the S&P 500 gained 0.29%.
The upcoming earnings release of Cava Group will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.17, reflecting a 6.25% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $353.73 million, up 26.06% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.55 per share and revenue of $1.49 billion, indicating changes of +1.85% and +26.21%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cava Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.08% higher. Cava Group is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Cava Group has a Forward P/E ratio of 161.56 right now. Its industry sports an average Forward P/E of 19.07, so one might conclude that Cava Group is trading at a premium comparatively.
Also, we should mention that CAVA has a PEG ratio of 6.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants industry had an average PEG ratio of 1.9 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 203, finds itself in the bottom 17% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
View the Zacks #1 Rank List
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Why Cava Group (CAVA) Outpaced the Stock Market Today
In the latest close session, Cava Group (CAVA - Free Report) was up +1.28% at $89.18. The stock's change was more than the S&P 500's daily gain of 1.09%. On the other hand, the Dow registered a gain of 0.14%, and the technology-centric Nasdaq increased by 1.91%.
Coming into today, shares of the Mediterranean restaurant chain had gained 9.34% in the past month. In that same time, the Retail-Wholesale sector lost 5.56%, while the S&P 500 gained 0.29%.
The upcoming earnings release of Cava Group will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.17, reflecting a 6.25% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $353.73 million, up 26.06% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.55 per share and revenue of $1.49 billion, indicating changes of +1.85% and +26.21%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cava Group. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 4.08% higher. Cava Group is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Cava Group has a Forward P/E ratio of 161.56 right now. Its industry sports an average Forward P/E of 19.07, so one might conclude that Cava Group is trading at a premium comparatively.
Also, we should mention that CAVA has a PEG ratio of 6.04. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants industry had an average PEG ratio of 1.9 as trading concluded yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 203, finds itself in the bottom 17% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.