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Chipotle Mexican Grill (CMG) Gains But Lags Market: What You Should Know
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Chipotle Mexican Grill (CMG - Free Report) closed the most recent trading day at $1,504.70, moving +0.13% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.59%. Elsewhere, the Dow gained 2.66%, while the tech-heavy Nasdaq added 0.12%.
Heading into today, shares of the Mexican food chain had lost 7.04% over the past month, outpacing the Retail-Wholesale sector's loss of 8.35% and the S&P 500's loss of 9.22% in that time.
Chipotle Mexican Grill will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2022. The company is expected to report EPS of $8.95, up 27.49% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.23 billion, up 14.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $32.50 per share and revenue of $8.74 billion. These totals would mark changes of +27.85% and +15.79%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Chipotle Mexican Grill. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 remained stagnant within the past month. Chipotle Mexican Grill is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Chipotle Mexican Grill is currently trading at a Forward P/E ratio of 46.23. This represents a premium compared to its industry's average Forward P/E of 18.77.
It is also worth noting that CMG currently has a PEG ratio of 1.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.72 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 179, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CMG in the coming trading sessions, be sure to utilize Zacks.com.
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Chipotle Mexican Grill (CMG) Gains But Lags Market: What You Should Know
Chipotle Mexican Grill (CMG - Free Report) closed the most recent trading day at $1,504.70, moving +0.13% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.59%. Elsewhere, the Dow gained 2.66%, while the tech-heavy Nasdaq added 0.12%.
Heading into today, shares of the Mexican food chain had lost 7.04% over the past month, outpacing the Retail-Wholesale sector's loss of 8.35% and the S&P 500's loss of 9.22% in that time.
Chipotle Mexican Grill will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2022. The company is expected to report EPS of $8.95, up 27.49% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.23 billion, up 14.41% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $32.50 per share and revenue of $8.74 billion. These totals would mark changes of +27.85% and +15.79%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Chipotle Mexican Grill. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 remained stagnant within the past month. Chipotle Mexican Grill is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Chipotle Mexican Grill is currently trading at a Forward P/E ratio of 46.23. This represents a premium compared to its industry's average Forward P/E of 18.77.
It is also worth noting that CMG currently has a PEG ratio of 1.98. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.72 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 179, putting it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow CMG in the coming trading sessions, be sure to utilize Zacks.com.