Why NYSE:CAVA qualifies as a high growth stock.

CAVA GROUP INC (NYSE:CAVA) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NYSE:CAVA.

Deciphering the Technical Picture of NYSE:CAVA

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

We assign a technical rating of 7 out of 10 to CAVA. In the last year, CAVA was one of the better performers, although we are getting mixed signals now in both the short and medium term time frames.

• The short term is neutral, but the long term trend is still positive. Not much to worry about for now.
• When comparing the yearly performance of all stocks, we notice that CAVA is one of the better performing stocks in the market, outperforming 95% of all stocks. We also observe that the gains produced by CAVA over the past year are nicely spread over this period.
• CAVA is part of the Hotels, Restaurants & Leisure industry. There are 134 other stocks in this industry. CAVA outperforms 93% of them.
• In the last month CAVA has a been trading in the 109.23 - 126.48 range, which is quite wide. It is currently trading near the high of this range.
• CAVA is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so CAVA is lagging the market slightly.

Check the latest full technical report of CAVA for a complete technical analysis.

How do we evaluate the setup for NYSE:CAVA?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:CAVA has a 8 as its setup rating:

Besides having an excellent technical rating, CAVA also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 123.91. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 114.37, a Stop Loss order could be placed below this zone.

Why NYSE:CAVA may be interesting for high growth investors.

• The EPS of CAVA GROUP INC has exhibited growth from one quarter to another (Q2Q), with a 150.0% increase. This underscores the company's ability to generate higher earnings and improve its financial standing.
• CAVA GROUP INC has demonstrated strong q2q revenue growth of 38.89%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
• With notable 1-year revenue growth of 34.04%, CAVA GROUP INC exemplifies its ability to generate increased sales and revenue streams. This growth signifies the company's strong business performance and its potential for future growth.
• Over the past 3 months, analysts have adjusted their EPS Estimate for CAVA GROUP INC with a 432.0% change. This highlights the evolving outlook on the company's EPS potential.
• The recent financial report of CAVA GROUP INC demonstrates a 150.0% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• CAVA GROUP INC has shown positive growth in its operating margin over the past year, indicating improved operational efficiency. This growth highlights the company's ability to effectively manage costs and maximize profitability.
• CAVA GROUP INC has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.
• Maintaining a Debt-to-Equity ratio of 0.0, CAVA GROUP INC demonstrates a conservative financial approach. This signifies the company's focus on minimizing debt burdens while preserving a solid equity position.
• With 68.42% of the total shares held by institutional investors, CAVA GROUP INC showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• CAVA GROUP INC has a strong history of beating EPS estimates in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.
• CAVA GROUP INC has achieved an impressive Relative Strength (RS) rating of 95.16, showcasing its ability to outperform the broader market. This strong performance positions CAVA GROUP INC as an attractive stock for potential price appreciation.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.