Chipotle Mexican Grill (CMG) closed at $38.05 in the latest trading session, marking a +1.47% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.54%. On the other hand, the Dow registered a gain of 0.03%, and the technology-centric Nasdaq decreased by 1.18%.
Heading into today, shares of the Mexican food chain had lost 4.24% over the past month, outpacing the Retail-Wholesale sector's loss of 5.23% and lagging the S&P 500's gain of 0.58%.
The upcoming earnings release of Chipotle Mexican Grill will be of great interest to investors. It is anticipated that the company will report an EPS of $0.24, marking a 17.24% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $3.07 billion, up 6.73% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.14 per share and a revenue of $12.92 billion, demonstrating changes of -2.56% and +8.31%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Chipotle Mexican Grill. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.12% downward. Currently, Chipotle Mexican Grill is carrying a Zacks Rank of #4 (Sell).
In the context of valuation, Chipotle Mexican Grill is at present trading with a Forward P/E ratio of 32.99. This valuation marks a premium compared to its industry average Forward P/E of 19.71.
We can also see that CMG currently has a PEG ratio of 2.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Retail - Restaurants was holding an average PEG ratio of 2.03 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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