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Chipotle Mexican Grill (CMG) Gains As Market Dips: What You Should Know
Chipotle Mexican Grill (CMG - Free Report) closed the most recent trading day at $1,509.68, moving +0.3% from the previous trading session. The stock outpaced the S&P 500's daily loss of 1.53%. At the same time, the Dow lost 1.72%, and the tech-heavy Nasdaq lost 3.27%.
Prior to today's trading, shares of the Mexican food chain had lost 11.48% over the past month. This has lagged the Retail-Wholesale sector's loss of 5.33% and the S&P 500's loss of 1.28% in that time.
Investors will be hoping for strength from Chipotle Mexican Grill as it approaches its next earnings release. In that report, analysts expect Chipotle Mexican Grill to post earnings of $8.83 per share. This would mark year-over-year growth of 54.91%. Meanwhile, our latest consensus estimate is calling for revenue of $2.33 billion, up 15.21% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $41.40 per share and revenue of $9.77 billion. These totals would mark changes of +26.3% and +13.11%, respectively, from last year.
Any recent changes to analyst estimates for Chipotle Mexican Grill should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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.
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. The Zacks Consensus EPS estimate has moved 2.72% lower within the past month. Chipotle Mexican Grill currently has a Zacks Rank of #4 (Sell).
Digging into valuation, Chipotle Mexican Grill currently has a Forward P/E ratio of 36.35. This valuation marks a premium compared to its industry's average Forward P/E of 22.16.
Investors should also note that CMG has a PEG ratio of 1.38 right now. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.98 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 76, which puts it in the top 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.