Chipotle Mexican Grill (CMG) ended the recent trading session at $49.73, demonstrating a -0.68% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.4%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq gained 0.39%.
Coming into today, shares of the Mexican food chain had lost 0.89% in the past month. In that same time, the Retail-Wholesale sector gained 5.7%, while the S&P 500 gained 6.69%.
The investment community will be paying close attention to the earnings performance of Chipotle Mexican Grill in its upcoming release. The company's upcoming EPS is projected at $0.32, signifying a 5.88% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $3.1 billion, indicating a 4.39% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.21 per share and a revenue of $12.23 billion, indicating changes of +8.04% and +8.1%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Chipotle Mexican Grill. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.17% lower within the past month. Chipotle Mexican Grill is holding a Zacks Rank of #4 (Sell) right now.
Looking at its valuation, Chipotle Mexican Grill is holding a Forward P/E ratio of 41.51. This denotes a premium relative to the industry's average Forward P/E of 23.33.
Investors should also note that CMG has a PEG ratio of 2.48 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Restaurants industry stood at 2.56 at the close of the market yesterday.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 171, this industry ranks in the bottom 31% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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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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