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

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Chipotle Mexican Grill (CMG - Free Report) closed at $1,566.34 in the latest trading session, marking a +1.01% move from the prior day. This move outpaced the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.28%, and the tech-heavy Nasdaq gained 3.16%.

Heading into today, shares of the Mexican food chain had lost 2.09% over the past month, outpacing the Retail-Wholesale sector's loss of 6.73% and the S&P 500's loss of 5.39% in that time.

Chipotle Mexican Grill will be looking to display strength as it nears its next earnings release, which is expected to be April 25, 2023. The company is expected to report EPS of $8.83, up 54.91% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.33 billion, up 15.21% from the prior-year quarter.

CMG's full-year Zacks Consensus Estimates are calling for earnings of $41.38 per share and revenue of $9.77 billion. These results would represent year-over-year changes of +26.24% and +13.11%, respectively.

Investors should also note any recent changes to analyst estimates for Chipotle Mexican Grill. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.76% lower. Chipotle Mexican Grill is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Chipotle Mexican Grill has a Forward P/E ratio of 37.47 right now. This represents a premium compared to its industry's average Forward P/E of 21.34.

Investors should also note that CMG has a PEG ratio of 1.42 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.88 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 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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