The Chart of the Day belongs to the Mediterranean fast food restaurant chain Cava (CAVA) . I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 4/29 the stock gained 35.13%.

(Click on image to enlarge)

CAVA Price vs Daily Moving Averages

CAVA operates within the U.S. limited-service restaurant industry, which exceeded $500B in sales in 2023, according to the Bureau of Economic Analysis (BEA). The Mediterranean food category was valued at nearly $40B in 2021, and the global health and wellness food sector, was projected at $840B in 2022. As the leading national fast casual Mediterranean brand, CAVA’s restaurant count is more than double the number of restaurants compared to its closest competitor, Tazikis, which had a total of 100 restaurants as of 2022.

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

• 100% technical buy signals
• 170.48+ Weighted Alpha
• 149.62% gain in the last year
• Trend Seeker buy signal
• Above its 20, 50 and 100 day moving averages
• 7 new highs and up 23.23% in the last month
• Relative Strength Index 66.28%
• Technical support level at $90.49
• Recently traded at $95.39 with 50 day moving average of $76.49

Fundamental Factors:

• Market Cap $10.71 billion
• P/E 219.34
• Revenue expected to grow 23.50% this year and increase another 19.90% next year
• Earnings estimated to increase 61.90% this year, an additional 29.40% next year and continue to compound at an annual rate of 38.10% for the next 5 years

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

• Wall Street analysts issued 6 strong buy, 5 buy and 4 hold recommendations
• Analysts have price targets between $72 and $95 with a consensus at $86
• Value Line does not rate the stock 
• CFRAs MarketScope has a  3 star hold rating and a 12 month price target at $85
• MorningStar gives the stock an average 3 star rating with a Fair Value of $104.29 about 10% under valued
• 7,730 investors monitor the stock on Seeking Alpha

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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