CAVA - Stock in a downtrendCAVA - A director on Friday disclosed share sales. Stock moving down on news. Stock breaking below trendline channel. Next support at $120 and $110. looking for puts below $125. Stock is weak on indicators.
CAVA trade ideas
New Setup: CAVACAVA: I have a swing trade setup. I'm looking to enter long if the stock can manage to CLOSE above the last candle highs. If triggered, I will then place a stop-loss below (SL) and a price target above it(TP-50%,move SL to breakeven), then using the close below the 10SMA as a trailing stop loss.
********
Note: The above setups will remain valid until the stock CLOSES BELOW my set stop-loss level(3).
Cava I Proven to be a steady performer - continued growthWelcome back! Let me know your thoughts in the comments!
** Cava Analysis - Listen to video!
We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met.
Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future.
Thanks for your continued support!Welcome back! Let me know your thoughts in the comments!
CAVA eyes on $158.79 possible top, 142.26 Golden Genesis supportCAVA has been climbing its Genesis Sequence quite well.
Just crossed a Golden fib that is now key trend support.
Ping on next blue fib or loss of Golden fib could mark top.
$ 142.26 is the Golden fib that bulls need to hold.
$ 156.79 is the minor sister that bears must watch.
$ 132.06 is the first support for bulls to fall back on.
==================================================
.
The bull market in Mediterranean rice bowlsWhile many investors spend weeks or even months searching for the next big AI stock, a company from a different sector has quietly taken the spotlight since the start of the year. With Mediterranean rice bowls as their signature offering, CAVA has surged to a market value of $15 billion and has become one of the top-performing stocks of the year up 200% since its IPO and even more than that since the year began.
Here are some quick facts about CAVA and the industry:
Market Value: CAVA is now worth $15 billion.
Stock Performance: CAVA has been one of the top-performing stocks in 2024 despite tech stocks remaining the preferred sector.
Fast-Casual Health: The fast-casual healthy dining sector is rapidly expanding, crushing companies like McDonald's as consumer preference changes.
CAVA's Niche: Mediterranean cuisine, with its focus on fresh ingredients, has resonated with health-conscious consumers. How much further can this go?
Expansion Plans: CAVA is aggressively expanding its footprint, opening new locations across the U.S.
So what's the lesson here? Well, I am not buying or selling this. I am late and missed it! The point of this story is that it can pay to look in other markets when everyone is focused on a specific sector. The biggest wins can come from unexpected places—like a Mediterranean rice bowl.
Short CAVA potential Gap fillThe current ascending triangle has tested 128 multiple times since August. Briefly holding above on 9/23/24 following a major retracement to a long term support trendline. I believe if the broader market turns bearish in the next week it will retest the 121-122 levels of support. if the current macro-economic events in the middle east, a hard landing and/or the euro/asian markets begin a reversal then we could see the gap fill to 104 in the long term. possibly in the next month or two. CAVA has strong fundamentals and a strong price target of 135 by UBS just a week ago. So i wouldnt be surprised if it breaks through the 128 level one more time before shifting directions. These are my observations and not financial advice.
9/20/24 - a PSA - FAFO Friday's (the long and short of it)I try to stick to longs generally for a few reasons
- bc they can make much more money from a compounding situation
- shorting in a print-money-make-all-turds-float-market is truly miserable
- it takes 2x the effort to find shorts than longs and you have to babysit them
With that being said, sometimes i can't help myself esp when it comes to offsetting my longs AND given i look at a lot of things, i tend to develop a list of stuff that's (just being real) pretty easy to avoid on the long side even if it's a momo-situation.
So. For those paying attention, i have a short list of things that i'm short and while in the short term they've tended to move against me... i am still holding them. i'm that confident the longs are renting exposure and majority of owners (and the loudest voices) are pretty low IQ opinions of how to value stonks. Have written about these. so go check that out.
NASDAQ:NN - worth a sneeze above zero, fundamentally
NYSE:PLTR - everyone who knows nothing about valuation but missed NASDAQ:NVDA loves this but can't tell you how they value it
NASDAQ:APLD - a CRYPTOCAP:BTC meme datacenter
NYSE:SG - great salads, but owning the stonk is like meeting p diddy in the pen. salad toss freak stonk.
NYSE:CAVA - a slightly better margin version of $sg. great food. redonk valuation on stonk (mgmt btw has been dumping... you holding that bag lol)
NASDAQ:WING - take a peek at the EPS vs. the valuation. if u enjoy paying 35x sales for NYSE:PLTR , you'll love paying 20x sales for a place that sells wings ;)
AMEX:KRE - bc the banking biz won't fare well if the long end of the curve keeps rising in a "rates cut" environment. banks are fukt and nothing's been fixed. another FAFO situation.
so there you have it
F.A.F.O. Friday.
Have a wonderful weekend
V
(long book is 25% gdlc, 10% bitw, 15% nxt, 15% celh, 5% myps and some misc. including some meme shorts above)
for now we remain in the casino go up. so position in things that are cheap or trade at discounts that you understand and haven't become popular. keep some cash on the sidelines (i am still packing quite a bit given my NASDAQ:CELH is leveraged w/ LT calls)... and keep an eye out. i can tell you that nobody knows what is going to happen next. so just have a game plan.
Insane overvaluation as we enter a recessionThere is little chance this stock does not correct give its extreme levels and the timing of the looming recession. People will be eating at home or at cheaper alternatives. The selling buy the top executives this early in the company history is not a good sign, not a disaster, but it makes one question the leaderships conviction.
$CAVA - it doesn't fill me up but can it fill the gap?NYSE:CAVA The chart doesn’t look so good. It’s either headed for $97 or checking back to the $88 trendline.
I went there to eat because of the hype, and all I can say is it’s an expensive Chipotle that doesn’t fill me up.
As always, I share my opinions and trades. I’m not suggesting anyone follow my trades. You do you.
Cava Stock Tumbles Amid Insider Selling Frenzy: What’s Next?Cava Group (NYSE: NYSE:CAVA ), the Mediterranean-themed restaurant chain, has been a darling of the stock market in 2024, nearly tripling in value since the beginning of the year. However, the stock took a significant hit early Tuesday after CEO Brent Schulman and several key executives and directors disclosed large sales of their shares. This insider selling, combined with technical indicators pointing to an overbought condition, has left investors wondering whether CAVA's remarkable run is coming to an end or if this is just a temporary setback.
Insider Selling Spurs Concern
According to SEC filings released Monday night, CEO Brent Schulman sold 210,504 shares for a total of $24.87 million. Other key figures, including Cava co-founder and Chief Concept Officer Ted Xenohristos, CFO Patricia Tolivar, and board members James White and David Bosserman, also sold substantial portions of their holdings, collectively cashing out millions of dollars. Insider selling, especially after a stock has experienced a sharp rise, often triggers concerns among investors. It can be perceived as a lack of confidence in the stock's future performance, even if the sales are for personal financial reasons.
NYSE:CAVA Stock: Technical Analysis
From a technical perspective, NYSE:CAVA stock is currently under pressure. After reaching record highs following its Q2 earnings report, which showed an impressive 183% spike in earnings and 35% revenue growth, the stock surged nearly 20% on Friday. However, as of Tuesday morning, the stock was down 7.87% in pre-market trading, indicating a potential gap-down pattern.
One key technical indicator to consider is the Relative Strength Index (RSI), which measures the speed and change of price movements. As of Monday, CAVA's RSI stood at 84, placing it firmly in the overbought territory. Stocks with an RSI above 70 are generally considered overbought and may be due for a pullback. This RSI reading suggests that CAVA’s rapid rise may have been overextended, making it ripe for profit-taking and a potential correction.
Investors should keep a close eye on the $107 support level. If the stock dips to this point and bounces back, it could signal a bullish reversal. However, if it breaks below this level, further declines could be in store, potentially erasing more of the year-to-date gains.
Fundamental Analysis: A Strong Growth Story
Despite the recent insider selling and technical warning signs, Cava’s fundamental story remains compelling. The company has demonstrated strong earnings growth, with its Q2 earnings up 183% year-over-year, easily beating analyst expectations. Revenue growth has also accelerated to 35%, showcasing the company’s ability to expand its market presence and attract more customers.
Cava's IPO in June 2023 at $22 per share marked the beginning of its meteoric rise, fueled by investor enthusiasm for its growth potential in the fast-casual dining sector. The stock's performance has been further supported by positive sentiment around its unique Mediterranean-focused menu, which appeals to health-conscious consumers.
What’s Next for CAVA Stock?
While the insider selling is a red flag, it doesn’t necessarily spell doom for NYSE:CAVA stock. The company's strong fundamentals suggest that it still has significant growth potential. However, investors should be cautious in the short term, particularly given the overbought technical conditions and the possibility of further downside if the stock breaks through key support levels.
For long-term investors, this pullback could present a buying opportunity, especially if the stock stabilizes above its support levels. For traders, it may be wise to wait for clearer signals before jumping back in, such as a reversal pattern or a confirmation of support at the $107 level.
In conclusion, while CAVA stock's recent dip is concerning, especially in light of the insider selling, the company's robust earnings and revenue growth indicate that its long-term story remains intact. Investors should monitor the stock's technical levels closely and consider the broader market context before making any decisions.
CAVA Group Options Ahead of EarningsIf you haven`t sold CAVA before this important retracement:
Now analyzing the options chain and the chart patterns of CAVA Group prior to the earnings report this week,
I would consider purchasing the 100usd strike price Calls with
an expiration date of 2024-8-23,
for a premium of approximately $5.05.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
CAVA PE 415 lol SELL++++This overpriced POS needs to pullback at a minimum to $108.67 before going higher, way overbought not to mention WAY overpriced! lol
CAVA - Still Looking good?CAVA has been trending up. the current pullback could be the start of something new. The company is still making a small profit and beating earnings. Is it strong enough to push through this downturn? Cava is one to watch?
8/23/24 - $cava - number went up... valuation is relevant now8/23/24 :: VROCKSTAR :: NYSE:CAVA
number went up... valuation is relevant now
- in my last note prior to the ((previous)) earnings, i was already struggling with valuation but said, be damned... "number go up".
- so here we are, right time, right place (thanks papa powell) and the salad bros have taken a page out of rachael ray's book and gone all EVOOOOOh yeah.
- $121 as of my writing this. think the valuation is in meme land. could it go higher? lol. dude i've been around long enough to remember too many things. i'd just caution you at this valuation. and i just opened a short. so flame me about how regarded i am in the comments pls :)
have a good weekend. buy something cheap and with better growth and margins. OTC:GDLC remains my fav. NASDAQ:NXT too. and keep your energy levels high octane with some NASDAQ:CELH for good measure. this NASDAQ:NVDA train about to drive some whacky action next week. play the AMEX:SOXL if you feel a bit degen today. but remember. stay solvent. keep your head on your shoulders. you will win some, you will lose some. you won't bat 1000. but you need to have enough chips to play the next hand.
V
Cava Group’s Stellar Quarter: Earnings Beat EstimatesCava Group (NYSE: NYSE:CAVA ), the Mediterranean fast-casual restaurant chain, has once again proven its mettle in the competitive restaurant industry. The company’s latest quarterly earnings report not only exceeded Wall Street’s expectations but also showcased Cava’s robust growth and expanding footprint.
Earnings and Revenue Soar
For the fiscal second quarter, which ended on July 14, 2024, Cava (NYSE: NYSE:CAVA ) reported earnings per share of 17 cents, surpassing analysts’ estimates of 13 cents. The company’s revenue also exceeded expectations, reaching $233 million, up 35% from the same period last year. This impressive growth was driven by a 14.4% increase in same-store sales, far outpacing the industry’s trends, which have seen many restaurant chains struggle with declining traffic.
Riding the Wave of Traffic Growth
One of the standout metrics from Cava’s report was the nearly 10% increase in customer traffic. While many other restaurant chains are experiencing a slowdown as consumers cut back on spending, Cava’s traffic growth is a testament to the brand’s strong appeal and innovative menu offerings. CEO and co-founder Brett Schulman attributed this growth to the introduction of a new grilled steak option, which has been a hit with customers, encouraging repeat visits and higher spending per visit.
Expansion and Future Outlook
Cava’s aggressive expansion strategy is another key driver of its success. During the quarter, the company opened 18 net new locations, bringing its total to 341 restaurants. This 22.2% year-over-year increase in restaurant count is a clear indication of the brand’s growing popularity and market penetration.
Looking ahead, Cava (NYSE: NYSE:CAVA ) has raised its full-year outlook, now expecting same-store sales growth between 8.5% and 9.5%, up from its previous forecast of 4.5% to 6.5%. The company also plans to open 54 to 57 new locations this year, slightly up from its earlier guidance. This expansion is supported by strong unit economics, with average unit volumes reaching $2.7 million, up from $2.6 million last year.
Strong Financial Performance
Cava’s financial performance was equally impressive, with a restaurant-level profit margin of 26.5%, slightly higher than the 26.1% reported in the prior year. The company’s digital revenue mix remained strong at 35.8%, reflecting the growing importance of online ordering and delivery in today’s restaurant industry.
Net income for the quarter was $19.7 million, up from $6.5 million a year earlier, and adjusted EBITDA grew to $34.3 million from $21.6 million. These figures underscore Cava’s ability to generate strong cash flow and profitability even as it continues to invest in growth.
Technical Outlook
Cava Group (NYSE: NYSE:CAVA ) has seen its stock rise by an impressive 8.65% during the premarket trading session on Friday. This significant increase in stock value has raised some eyebrows among investors and analysts alike. However, prior to this noteworthy surge in price, the Relative Strength Index (RSI) for Cava Group was measured at 76. This high RSI level suggests that the stock is currently in an overbought territory. As a result, there is an expectation that a trend reversal might be on the horizon since buyers could potentially face challenges in sustaining this upward momentum for much longer. The market dynamics indicate that caution may be warranted as the situation develops.
Conclusion
Cava’s second-quarter results highlight the company’s resilience and growth potential in a challenging economic environment. With its successful expansion strategy, strong customer traffic, and innovative menu offerings, Cava is well-positioned to continue its upward trajectory. As the company raises its full-year outlook and continues to outperform industry trends, it’s clear that Cava is not just surviving but thriving in today’s competitive restaurant landscape.
Long CAVA @84.31I love this one so I reached just a little at the strong open this morning.
Oversold in a VERY strong 9 month uptrend.
If you follow me you know the drill:
Oversold, keep buying 1 lot as long as it stays oversold and sell each lot as it becomes both overbought AND profitable.
Indicator and strategy paired with CAVA are 23-4* in the last 12 months (the 4 "losses" are open trades from the most recent signal that hasn't reached the goal yet). I just discovered the stock and crunched the numbers this weekend so my first actual trade in this ticker is this one, but I bought a quadruple lot since it's been oversold for 4 consecutive trading days.
The stats below include pricing the 4 "losses" at the closing price from Friday as negative return closed trades. As of this moment the numbers would be better since the stock is up from my entry price.
Average win = +7.5%
Median win = 9.34
Total return last 12M = 2.01x lot (201% of the lot size you're trading)
The only downside is that early in the 12 month lookback, it was in a downtrend and several trades took months to close, so the average holding period per lot is 36 days because of that. These trades don't always work out immediately. That said, the last ten trades have had a holding period on average of 7 days which is a very quick turnaround for this type of trade.
The holding period on trades matters. When the money is tied up in a trade for 6 months, it can't be used for other trades that could make money more quickly. That's the big drawback of buy and hold in my opinion, even if you pick the stocks well (something professional money managers can't do well enough to outperform the indexes consistently).
All that said, the recent performance of CAVA suggests a fairly quick turnaround on the trade. We shall see.
As always - this is fiscal entertainment. My trades are mine and not presented as investment advice. If you choose to trade along with me, it's your responsibility if the trade goes sideways on you. But if you do trade it, I hope you make money, because that means I'm making it too. :)
I'll add updates if I add or sell lots.
CAVA: Buy ideaBuy idea on CAVA as you can see on the chart if only if we have the breakout with force the vwap and the resistance line by a big green candle follow by a large green volume...
$CAVA LONG OPPORTUNITYWhy I am bullish on NYSE:CAVA
- About to retest the bottom of our daily trend channel
- The bottom of this trend channel aligns with a Liquidity Grab zone
- A lot more buying pressure vs selling on the Weighted Volume Profile on the bottom of our trend channel
- In a strong uptrend already
My personal trade:
Stop Loss / Take Profits:
- Entry: $76.79
- Take Profit: $97.29
- Stop Loss: $73.03
Cava Group (CAVA) AnalysisRapid Expansion and Market Growth:
Cava Group NYSE:CAVA Group, a Mediterranean fast food chain, is rapidly growing with 323 locations and aims to reach 1,000 by 2032. This expansion could triple its annual revenue. Cava leverages AI to improve order accuracy and service speed, boosting financial performance.
Financial Performance and Profitability:
In Q1 2024, Cava reported a 25.2% profit margin and $19 million in operating income. Its strong unit economics suggest it can fund growth and remain profitable. Since going public, Cava's EBITDA nearly doubled in the latest quarter, showcasing financial strength.
Investment Outlook:
Bullish Outlook: We are bullish on CAVA above the $82.00-$83.00 range.
Upside Potential: With an upside target set at $125.00-$126.00, investors should consider Cava's strategic growth plans and financial robustness as key drivers for potential stock appreciation.
📊🥙 Monitor Cava Group for promising investment opportunities! #CAVA #FastFoodGrowth 📈🔍
CAVA: Spring effect: Buy ideaOn CAVA we have a spring effect on Vwap indicator so it's mean that we would have a hight probability to have an uptrend.
CAVA Cup & Handle Breakout TradeHappy Tuesday everybody, the stock caba is set to make a breakout of a base soon and I'm going to make a play on it to see if I can catch that move doing a buy to open and setting my stop loss below Monday's low. This stock is part of the consumer cyclical sector which has been performing well possibly because of pending interest rate cuts leading to increased consumer spending with credit cards but I'm not really sure if that's the cause.
