Cava Group (CAVA) closed the most recent trading day at $63.24, moving +2.55% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.06%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.39%.
Heading into today, shares of the Mediterranean restaurant chain had lost 6.43% over the past month, lagging the Retail-Wholesale sector’s gain of 0.29% and the S&P 500’s gain of 3.94%.
The upcoming earnings release of Cava Group will be of great interest to investors. On that day, Cava Group is projected to report earnings of $0.14 per share, which would represent a year-over-year decline of 6.67%. Meanwhile, the latest consensus estimate predicts the revenue to be $294.91 million, indicating a 20.95% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.56 per share and a revenue of $1.18 billion, indicating changes of +33.33% and +22.91%, respectively, from the former year.
It’s also important for investors to be aware of any recent modifications 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 business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Cava Group is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Cava Group is currently trading at a Forward P/E ratio of 110.13. This represents a premium compared to its industry average Forward P/E of 22.81.
We can also see that CAVA currently has a PEG ratio of 3.08. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Retail – Restaurants stocks are, on average, holding a PEG ratio of 2.23 based on yesterday’s closing prices.
The Retail – Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 193, positioning it in the bottom 22% of all 250+ industries.
