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Cava Group (CAVA) has an average brokerage recommendation (ABR) of 1.75, indicating a general consensus of “Buy” based on the ratings from 20 brokerage firms. Out of these, 12 recommends a “Strong Buy” and 1 a “Buy,” reflecting a bullish sentiment among analysts.
Despite the favorable ABR, CAVA’s Zacks Consensus Estimate for the current year has dropped by 1% to $0.55, leading to a Zacks Rank of #4 (Sell). This decline suggests increasing pessimism regarding the company’s earnings prospects, which may impact its stock price negatively in the near term.
Investors are cautioned to consider the ABR with skepticism, as brokerage recommendations may not accurately reflect stock potential due to inherent biases, while Zacks Rank offers a more robust indicator of near-term price movements.
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