Why the Market Dipped But Cava Group (CAVA) Gained Today
Cava Group (CAVA) closed the most recent trading day at $71.94, moving +1.91% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 1.57% for the day. Elsewhere, the Dow lost 1.49%, while the tech-heavy Nasdaq lost 2.04%.
The Mediterranean restaurant chain's stock has climbed by 3.2% in the past month, exceeding the Retail-Wholesale sector's loss of 2.49% and the S&P 500's loss of 2.5%.
The upcoming earnings release of Cava Group will be of great interest to investors.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.25 per share and revenue of $874 million, which would represent changes of +19.05% and +19.94%, respectively, from the prior 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, the Zacks Consensus EPS estimate has moved 3.59% higher. Currently, Cava Group is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Cava Group currently has a Forward P/E ratio of 285.62. For comparison, its industry has an average Forward P/E of 21.83, which means Cava Group is trading at a premium to the group.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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CAVA Group, Inc. (CAVA) : Free Stock Analysis Report
