Cava Stock Jumps Into Overbought Territory. Is It Too Late to Buy CAVA Now?

Cava Group (CAVA) jumped about 25% higher on Wednesday after the Mediterranean fast-casual restaurant chain said a strong Q4 helped its full-year revenue surpass $1 billion for the first time. This meteoric run pushed CAVA’s relative strength index (14-day) in the 70s, signaling overbought conditions that often precede a significant correction. Still, for long-term investors, it’s reasonable to load up on CAVA stock at current levels, especially since it’s still down about 15% versus its 52-week high. M ...