Back to top

Image: Bigstock

Cava Group (CAVA) Outpaces Stock Market Gains: What You Should Know

Read MoreHide Full Article

In the latest market close, Cava Group (CAVA - Free Report) reached $114.59, with a +1.57% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.16%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq depreciated by 0.06%.

The Mediterranean restaurant chain's shares have seen a decrease of 11.44% over the last month, not keeping up with the Retail-Wholesale sector's loss of 4.84% and the S&P 500's loss of 2.8%.

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 $0.06, up 200% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $225.52 million, reflecting a 27.29% rise from the equivalent quarter last year.

Investors should also pay attention to any latest changes in analyst estimates for Cava Group. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Cava Group possesses a Zacks Rank of #2 (Buy).

Digging into valuation, Cava Group currently has a Forward P/E ratio of 183.66. This signifies a premium in comparison to the average Forward P/E of 23.16 for its industry.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 156, placing it within the bottom 38% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


CAVA Group, Inc. (CAVA) - free report >>

Published in