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

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Chipotle Mexican Grill (CMG - Free Report) closed the most recent trading day at $1,898.34, moving -0.26% from the previous trading session. This change lagged the S&P 500's daily gain of 0.03%.

Prior to today's trading, shares of the Mexican food chain had gained 1% over the past month. This has outpaced the Retail-Wholesale sector's gain of 0.9% and lagged the S&P 500's gain of 3.02% in that time.

Investors will be hoping for strength from CMG as it approaches its next earnings release. In that report, analysts expect CMG to post earnings of $6.21 per share. This would mark year-over-year growth of 65.16%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.93 billion, up 20.51% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $25.46 per share and revenue of $7.51 billion, which would represent changes of +137.28% and +25.43%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CMG. Recent revisions tend to reflect the latest near-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. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.3% higher. CMG currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, CMG is holding a Forward P/E ratio of 74.76. Its industry sports an average Forward P/E of 25.68, so we one might conclude that CMG is trading at a premium comparatively.

We can also see that CMG currently has a PEG ratio of 3.74. 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 3.01 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 121, putting it in the top 48% 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.

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