Cava Group (CAVA) ended the recent trading session at $124.01, demonstrating a +0.5% swing from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.53%. At the same time, the Dow added 0.93%, and the tech-heavy Nasdaq gained 0.22%.
Coming into today, shares of the Mediterranean restaurant chain had gained 4.11% in the past month. In that same time, the Retail-Wholesale sector gained 2.71%, while the S&P 500 gained 2.69%.
Analysts and investors alike will be keeping a close eye on the performance of Cava Group in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.06, reflecting a 200% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $225.54 million, reflecting a 27.3% rise from the equivalent quarter last year.
Investors might also notice recent changes to analyst estimates for Cava Group. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Cava Group is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Cava Group is presently trading at a Forward P/E ratio of 200.87. This represents a premium compared to its industry's average Forward P/E of 23.24.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 76, finds itself in the top 31% echelons 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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