In the latest trading session, Chipotle Mexican Grill (CMG - Free Report) closed at $1,277.36, marking a +0.8% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.52%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, added 1.21%.
Heading into today, shares of the Mexican food chain had gained 4.19% over the past month, outpacing the Retail-Wholesale sector's gain of 1.57% and the S&P 500's gain of 0.49% in that time.
Investors will be hoping for strength from CMG as it approaches its next earnings release, which is expected to be October 21, 2020. On that day, CMG is projected to report earnings of $3.30 per share, which would represent a year-over-year decline of 13.61%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.58 billion, up 12.71% from the year-ago period.
CMG's full-year Zacks Consensus Estimates are calling for earnings of $10.89 per share and revenue of $5.97 billion. These results would represent year-over-year changes of -22.49% and +6.86%, respectively.
Investors should also note any recent changes to analyst estimates for CMG. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.58% higher within the past month. CMG currently has a Zacks Rank of #3 (Hold).
In terms of valuation, CMG is currently trading at a Forward P/E ratio of 116.41. This valuation marks a premium compared to its industry's average Forward P/E of 34.03.
Also, we should mention that CMG has a PEG ratio of 6.05. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 3.85 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.