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Here's Why Chipotle Mexican Grill (CMG) Fell More Than Broader Market
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The most recent trading session ended with Chipotle Mexican Grill (CMG - Free Report) standing at $2,232, reflecting a -0.2% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.15% loss on the day. Meanwhile, the Dow experienced a drop of 0.42%, and the technology-dominated Nasdaq saw an increase of 0.09%.
Coming into today, shares of the Mexican food chain had lost 2.57% in the past month. In that same time, the Retail-Wholesale sector gained 3.43%, while the S&P 500 gained 3.5%.
The investment community will be closely monitoring the performance of Chipotle Mexican Grill in its forthcoming earnings report. The company is scheduled to release its earnings on February 6, 2024. The company's upcoming EPS is projected at $9.60, signifying a 15.8% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.49 billion, indicating a 14.06% growth compared to the corresponding quarter of the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Chipotle Mexican Grill. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. Chipotle Mexican Grill presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Chipotle Mexican Grill is currently trading at a Forward P/E ratio of 42.69. This denotes a premium relative to the industry's average Forward P/E of 18.98.
Investors should also note that CMG has a PEG ratio of 1.64 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.76 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Here's Why Chipotle Mexican Grill (CMG) Fell More Than Broader Market
The most recent trading session ended with Chipotle Mexican Grill (CMG - Free Report) standing at $2,232, reflecting a -0.2% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.15% loss on the day. Meanwhile, the Dow experienced a drop of 0.42%, and the technology-dominated Nasdaq saw an increase of 0.09%.
Coming into today, shares of the Mexican food chain had lost 2.57% in the past month. In that same time, the Retail-Wholesale sector gained 3.43%, while the S&P 500 gained 3.5%.
The investment community will be closely monitoring the performance of Chipotle Mexican Grill in its forthcoming earnings report. The company is scheduled to release its earnings on February 6, 2024. The company's upcoming EPS is projected at $9.60, signifying a 15.8% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $2.49 billion, indicating a 14.06% growth compared to the corresponding quarter of the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Chipotle Mexican Grill. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. Chipotle Mexican Grill presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Chipotle Mexican Grill is currently trading at a Forward P/E ratio of 42.69. This denotes a premium relative to the industry's average Forward P/E of 18.98.
Investors should also note that CMG has a PEG ratio of 1.64 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.76 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 71, putting it in the top 29% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.