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Chipotle Mexican Grill (CMG) Outpaces Stock Market Gains: What You Should Know

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Chipotle Mexican Grill (CMG - Free Report) closed at $1,368.14 in the latest trading session, marking a +1.84% move from the prior day. The stock outpaced the S&P 500's daily gain of 1.49%. Elsewhere, the Dow gained 0.69%, while the tech-heavy Nasdaq added 2.56%.

Heading into today, shares of the Mexican food chain had gained 2.24% over the past month, outpacing the Retail-Wholesale sector's loss of 2.15% and the S&P 500's gain of 1.44% in that time.

Wall Street will be looking for positivity from CMG as it approaches its next earnings report date. This is expected to be February 2, 2021. In that report, analysts expect CMG to post earnings of $3.73 per share. This would mark year-over-year growth of 30.42%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.61 billion, up 11.81% from the year-ago period.

Investors might also notice recent changes to analyst estimates for CMG. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.09% lower within the past month. CMG currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, CMG is holding a Forward P/E ratio of 63.93. This represents a premium compared to its industry's average Forward P/E of 30.43.

Also, we should mention that CMG has a PEG ratio of 3.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.7 based on yesterday's closing prices.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% 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.

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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