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Chipotle Mexican Grill (CMG) Stock Sinks As Market Gains: Here's Why

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Chipotle Mexican Grill (CMG - Free Report) closed at $2,926.96 in the latest trading session, marking a -0.16% move from the prior day. This change lagged the S&P 500's 0.15% gain on the day. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq gained 0.32%.

Prior to today's trading, shares of the Mexican food chain had gained 10.1% over the past month. This has outpaced the Retail-Wholesale sector's gain of 1.12% and the S&P 500's gain of 1.65% in that time.

Investors will be eagerly watching for the performance of Chipotle Mexican Grill in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 24, 2024. In that report, analysts expect Chipotle Mexican Grill to post earnings of $11.37 per share. This would mark year-over-year growth of 8.29%. Alongside, our most recent consensus estimate is anticipating revenue of $2.66 billion, indicating a 12.31% upward movement from the same quarter last year.

CMG's full-year Zacks Consensus Estimates are calling for earnings of $53.12 per share and revenue of $11.22 billion. These results would represent year-over-year changes of +18.41% and +13.65%, respectively.

Investors might also notice recent changes to analyst estimates for Chipotle Mexican Grill. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.02% rise in the Zacks Consensus EPS estimate. As of now, Chipotle Mexican Grill holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Chipotle Mexican Grill is holding a Forward P/E ratio of 55.19. This valuation marks a premium compared to its industry's average Forward P/E of 21.52.

Also, we should mention that CMG has a PEG ratio of 2.51. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Retail - Restaurants industry stood at 1.81 at the close of the market yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 147, which puts it in the bottom 42% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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