In the latest trading session, Cava Group (CAVA) closed at $89.04, marking a -1.14% move from the previous day. This change lagged the S&P 500's 0.79% gain on the day. Elsewhere, the Dow saw an upswing of 0.78%, while the tech-heavy Nasdaq appreciated by 0.64%.
The Mediterranean restaurant chain's shares have seen an increase of 16.25% over the last month, surpassing the Retail-Wholesale sector's loss of 3.65% and the S&P 500's loss of 3.56%.
Market participants will be closely following the financial results of Cava Group in its upcoming release. It is anticipated that the company will report an EPS of $0.15, marking a 25% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $330.75 million, indicating a 27.7% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.56 per share and revenue of $1.2 billion, indicating changes of +33.33% and +24.1%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Cava Group should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.97% higher within the past month. Cava Group is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Cava Group is currently exchanging hands at a Forward P/E ratio of 162.29. This signifies a premium in comparison to the average Forward P/E of 21.48 for its industry.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 205, positioning it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CAVA Group, Inc. (CAVA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.