Cava Group (cava) Dips More Than Broader Market: What You Should Know

Cava Group (CAVA) ended the recent trading session at $118.60, demonstrating a -0.69% swing from the preceding day's closing price. This change lagged the S&P 500's 0.43% loss on the day. Meanwhile, the Dow lost 1.01%, and the Nasdaq, a tech-heavy index, lost 0.47%.

The Mediterranean restaurant chain's shares have seen a decrease of 3.22% over the last month, not keeping up with the Retail-Wholesale sector's gain of 5.51% and the S&P 500's gain of 2.6%.

Market participants will be closely following the financial results of Cava Group in its upcoming release. The company plans to announce its earnings on February 25, 2025. The company's upcoming EPS is projected at $0.06, signifying a 200% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $225.54 million, indicating a 27.3% upward movement from the same quarter last year.

Any recent changes to analyst estimates for Cava Group should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Cava Group boasts a Zacks Rank of #4 (Sell).

With respect to valuation, Cava Group is currently being traded at a Forward P/E ratio of 194.4. Its industry sports an average Forward P/E of 24.2, so one might conclude that Cava Group is trading at a premium comparatively.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 66, this industry ranks in the top 27% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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