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Chipotle Mexican Grill (CMG) Dips More Than Broader Markets: What You Should Know

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Chipotle Mexican Grill (CMG - Free Report) closed at $1,906.53 in the latest trading session, marking a -0.93% move from the prior day. This change lagged the S&P 500's daily loss of 0.58%.

Coming into today, shares of the Mexican food chain had gained 5.96% in the past month. In that same time, the Retail-Wholesale sector lost 4.18%, while the S&P 500 gained 2.07%.

Wall Street will be looking for positivity from CMG as it approaches its next earnings report date. The company is expected to report EPS of $6.21, up 65.16% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.93 billion, up 20.51% from the prior-year quarter.

CMG's full-year Zacks Consensus Estimates are calling for earnings of $25.46 per share and revenue of $7.51 billion. These results would represent year-over-year changes of +137.28% and +25.43%, respectively.

Any recent changes to analyst estimates for CMG should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 0.3% higher. CMG is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, CMG currently has a Forward P/E ratio of 75.59. This represents a premium compared to its industry's average Forward P/E of 25.31.

Meanwhile, CMG's PEG ratio is currently 3.78. 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. The Retail - Restaurants was holding an average PEG ratio of 2.97 at yesterday's closing price.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 123, which puts it in the top 49% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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