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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 the most recent trading day at $2,101.49, moving +1.68% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 2.93%.
Prior to today's trading, shares of the Mexican food chain had lost 0.22% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.35% and the S&P 500's gain of 4.22% in that time.
Chipotle Mexican Grill will be looking to display strength as it nears its next earnings release, which is expected to be July 26, 2023. On that day, Chipotle Mexican Grill is projected to report earnings of $12.12 per share, which would represent year-over-year growth of 30.32%. Our most recent consensus estimate is calling for quarterly revenue of $2.52 billion, up 13.81% from the year-ago period.
CMG's full-year Zacks Consensus Estimates are calling for earnings of $43.98 per share and revenue of $9.86 billion. These results would represent year-over-year changes of +34.17% and +14.16%, respectively.
Investors should also note any recent changes to analyst estimates for Chipotle Mexican Grill. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.17% higher. Chipotle Mexican Grill is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Chipotle Mexican Grill is currently trading at a Forward P/E ratio of 47. This represents a premium compared to its industry's average Forward P/E of 23.91.
Also, we should mention that CMG has a PEG ratio of 1.48. 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 1.96 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% 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.
To follow CMG in the coming trading sessions, be sure to utilize Zacks.com.
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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 $2,101.49, moving +1.68% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.04%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, added 2.93%.
Prior to today's trading, shares of the Mexican food chain had lost 0.22% over the past month. This has lagged the Retail-Wholesale sector's gain of 5.35% and the S&P 500's gain of 4.22% in that time.
Chipotle Mexican Grill will be looking to display strength as it nears its next earnings release, which is expected to be July 26, 2023. On that day, Chipotle Mexican Grill is projected to report earnings of $12.12 per share, which would represent year-over-year growth of 30.32%. Our most recent consensus estimate is calling for quarterly revenue of $2.52 billion, up 13.81% from the year-ago period.
CMG's full-year Zacks Consensus Estimates are calling for earnings of $43.98 per share and revenue of $9.86 billion. These results would represent year-over-year changes of +34.17% and +14.16%, respectively.
Investors should also note any recent changes to analyst estimates for Chipotle Mexican Grill. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.17% higher. Chipotle Mexican Grill is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, Chipotle Mexican Grill is currently trading at a Forward P/E ratio of 47. This represents a premium compared to its industry's average Forward P/E of 23.91.
Also, we should mention that CMG has a PEG ratio of 1.48. 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 1.96 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% 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.
To follow CMG in the coming trading sessions, be sure to utilize Zacks.com.