In the latest trading session, Cava Group (CAVA) closed at $92.39, marking a +0.52% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.15%. On the other hand, the Dow registered a gain of 0.35%, and the technology-centric Nasdaq decreased by 0.09%.
Shares of the Mediterranean restaurant chain witnessed a gain of 5.4% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 0.27% and the S&P 500's loss of 0.21%.
The investment community will be closely monitoring the performance of Cava Group in its forthcoming earnings report. The company is scheduled to release its earnings on May 15, 2025. The company is forecasted to report an EPS of $0.14, showcasing a 16.67% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $330.46 million, reflecting a 27.59% rise from the equivalent quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.55 per share and revenue of $1.19 billion, indicating changes of +30.95% and +23.91%, 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 typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. The Zacks Consensus EPS estimate has moved 0.72% higher within the past month. At present, Cava Group boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Cava Group is at present trading with a Forward P/E ratio of 166.35. Its industry sports an average Forward P/E of 20.93, so one might conclude that Cava Group is trading at a premium comparatively.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 206, which puts it in the bottom 17% of all 250+ industries.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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