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Chipotle Mexican Grill (CMG) Beats Stock Market Upswing: What Investors Need to Know

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In the latest market close, Chipotle Mexican Grill (CMG - Free Report) reached $2,797.56, with a +0.87% movement compared to the previous day. The stock exceeded the S&P 500, which registered a gain of 0.57% for the day. Meanwhile, the Dow experienced a rise of 0.83%, and the technology-dominated Nasdaq saw an increase of 0.39%.

The the stock of Mexican food chain has risen by 6.74% in the past month, leading the Retail-Wholesale sector's gain of 2.73% and the S&P 500's gain of 2.97%.

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 April 24, 2024. The company is forecasted to report an EPS of $11.36, showcasing an 8.19% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $2.66 billion, reflecting a 12.27% rise from the equivalent quarter last year.

CMG's full-year Zacks Consensus Estimates are calling for earnings of $53.11 per share and revenue of $11.22 billion. These results would represent year-over-year changes of +18.39% and +13.63%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts 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.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.01% higher within the past month. Chipotle Mexican Grill is holding a Zacks Rank of #3 (Hold) right now.

With respect to valuation, Chipotle Mexican Grill is currently being traded at a Forward P/E ratio of 52.23. For comparison, its industry has an average Forward P/E of 21, which means Chipotle Mexican Grill is trading at a premium to the group.

It's also important to note that CMG currently trades at a PEG ratio of 2.39. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.97.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 146, putting it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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