Back to top

Image: Bigstock

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

Read MoreHide Full Article

Chipotle Mexican Grill (CMG - Free Report) closed at $1,331.71 in the latest trading session, marking a +0.2% move from the prior day. This change outpaced the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.11%.

Heading into today, shares of the Mexican food chain had lost 5.23% over the past month, lagging the Retail-Wholesale sector's gain of 9.14% and the S&P 500's loss of 0.62% in that time.

Wall Street will be looking for positivity from Chipotle Mexican Grill as it approaches its next earnings report date. This is expected to be July 26, 2022. The company is expected to report EPS of $9.04, up 21.18% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.24 billion, up 18.56% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $31.45 per share and revenue of $8.79 billion. These totals would mark changes of +23.72% and +16.47%, respectively, from last year.

Any recent changes to analyst estimates for Chipotle Mexican Grill 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.

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.

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% lower. Chipotle Mexican Grill is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Chipotle Mexican Grill is holding a Forward P/E ratio of 42.25. Its industry sports an average Forward P/E of 18.33, so we one might conclude that Chipotle Mexican Grill is trading at a premium comparatively.

Investors should also note that CMG has a PEG ratio of 1.82 right now. 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. The Retail - Restaurants industry currently had an average PEG ratio of 1.83 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Chipotle Mexican Grill, Inc. (CMG) - free report >>

Published in