Chipotle Mexican Grill (CMG) closed the most recent trading day at $35.37, moving -4.56% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 1.33%. Elsewhere, the Dow saw a downswing of 0.95%, while the tech-heavy Nasdaq depreciated by 1.59%.
The stock of Mexican food chain has fallen by 3.62% in the past month, lagging the Retail-Wholesale sector's loss of 2.54% and 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. Meanwhile, our latest consensus estimate is calling for revenue of $3.07 billion, up 6.73% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.14 per share and revenue of $12.92 billion, indicating changes of -2.56% and +8.37%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Chipotle Mexican Grill should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 4.77% lower within the past month. Chipotle Mexican Grill is currently sporting a Zacks Rank of #5 (Strong Sell).
From a valuation perspective, Chipotle Mexican Grill is currently exchanging hands at a Forward P/E ratio of 32.61. This denotes a premium relative to the industry average Forward P/E of 19.07.
Investors should also note that CMG has a PEG ratio of 2.28 right now. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 191, placing it within the bottom 23% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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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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