Cava Group (CAVA) Stock Sinks As Market Gains: Here's Why
Cava Group (CAVA) ended the recent trading session at $74.24, demonstrating a -0.09% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.13%. Elsewhere, the Dow gained 0.08%, while the tech-heavy Nasdaq lost 0.1%.
Coming into today, shares of the Mediterranean restaurant chain had gained 14.43% in the past month. In that same time, the Retail-Wholesale sector gained 0.98%, while the S&P 500 lost 0.35%.
Analysts and investors alike will be keeping a close eye on the performance of Cava Group in its upcoming earnings disclosure.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.25 per share and revenue of $874 million, indicating changes of +19.05% and +19.94%, respectively, compared to the previous year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Cava Group. These revisions help to show the ever-changing nature 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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 shifted 3.59% upward. Cava Group is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note Cava Group's current valuation metrics, including its Forward P/E ratio of 300.68. This valuation marks a premium compared to its industry's average Forward P/E of 20.09.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 38% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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CAVA Group, Inc. (CAVA) : Free Stock Analysis Report