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Chipotle Mexican Grill (CMG) Outpaces Stock Market Gains: What You Should Know
Chipotle Mexican Grill (CMG - Free Report) closed the most recent trading day at $1,524.57, moving +0.8% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 1.1%.
Heading into today, shares of the Mexican food chain had gained 1.68% over the past month, lagging the Retail-Wholesale sector's gain of 3.05% and outpacing the S&P 500's loss of 0.01% 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 February 7, 2023. The company is expected to report EPS of $8.83, up 58.24% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.23 billion, up 13.86% from the year-ago period.
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. 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 0.04% higher within the past month. Chipotle Mexican Grill is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Chipotle Mexican Grill currently has a Forward P/E ratio of 35.48. This valuation marks a premium compared to its industry's average Forward P/E of 21.67.
Meanwhile, CMG's PEG ratio is currently 1.32. 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. CMG's industry had an average PEG ratio of 2.04 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 209, which puts it in the bottom 18% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow CMG in the coming trading sessions, be sure to utilize Zacks.com.