Back to top

Image: Bigstock

Chipotle Mexican Grill (CMG) Increases Despite Market Slip: Here's What You Need to Know

Read MoreHide Full Article

In the latest trading session, Chipotle Mexican Grill (CMG - Free Report) closed at $2,419.28, marking a +0.61% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.06% for the day. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.76%.

Shares of the Mexican food chain have appreciated by 5.14% over the course of the past month, outperforming the Retail-Wholesale sector's gain of 1.86% and the S&P 500's gain of 3.36%.

The investment community will be paying close attention to the earnings performance of Chipotle Mexican Grill in its upcoming release. The company is slated to reveal its earnings on February 6, 2024. The company's upcoming EPS is projected at $9.71, signifying a 17.13% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.49 billion, up 14.2% from the prior-year quarter.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Chipotle Mexican Grill. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.71% higher. Currently, Chipotle Mexican Grill is carrying a Zacks Rank of #2 (Buy).

In terms of valuation, Chipotle Mexican Grill is currently trading at a Forward P/E ratio of 45.58. For comparison, its industry has an average Forward P/E of 21.23, which means Chipotle Mexican Grill is trading at a premium to the group.

Meanwhile, CMG's PEG ratio is currently 1.76. 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 1.84 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 159, which puts it in the bottom 37% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Chipotle Mexican Grill, Inc. (CMG) - free report >>

Published in