In the latest trading session, Cava Group (CAVA) closed at $91.91, marking a -1.34% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.58%. On the other hand, the Dow registered a gain of 0.75%, and the technology-centric Nasdaq increased by 0.55%.

The the stock of Mediterranean restaurant chain has risen by 7.81% in the past month, leading the Retail-Wholesale sector's loss of 0.19% and the S&P 500's loss of 0.84%.

Investors will be eagerly watching for the performance of Cava Group in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 15, 2025. It is anticipated that the company will report an EPS of $0.14, marking a 16.67% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $330.46 million, indicating a 27.59% growth compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.55 per share and a revenue of $1.19 billion, representing changes of +30.95% and +23.91%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Cava Group. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.72% upward. Right now, Cava Group possesses a Zacks Rank of #3 (Hold).

From a valuation perspective, Cava Group is currently exchanging hands at a Forward P/E ratio of 168.62. This represents a premium compared to its industry's average Forward P/E of 21.09.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 202, this industry ranks in the bottom 19% of all industries, numbering over 250.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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This article originally published on Zacks Investment Research (zacks.com).

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