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Chipotle Mexican Grill (CMG) Outperforms Broader Market: What You Need to Know

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The most recent trading session ended with Chipotle Mexican Grill (CMG - Free Report) standing at $57.97, reflecting a +1.83% shift from the previouse trading day's closing. The stock's change was more than the S&P 500's daily gain of 1.7%. At the same time, the Dow added 1.26%, and the tech-heavy Nasdaq gained 2.51%.

The Mexican food chain's stock has climbed by 5.96% in the past month, exceeding the Retail-Wholesale sector's gain of 4.02% and the S&P 500's gain of 1.27%.

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 October 29, 2024. The company is predicted to post an EPS of $0.24, indicating a 4.35% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.81 billion, up 13.64% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $1.08 per share and a revenue of $11.33 billion, demonstrating changes of +20% and +14.78%, respectively, from the preceding year.

It is also important to note the recent changes to analyst estimates for Chipotle Mexican Grill. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, Chipotle Mexican Grill is carrying a Zacks Rank of #4 (Sell).

Looking at its valuation, Chipotle Mexican Grill is holding a Forward P/E ratio of 52.54. This expresses a premium compared to the average Forward P/E of 20.58 of its industry.

Investors should also note that CMG has a PEG ratio of 2.38 right now. 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. The Retail - Restaurants industry had an average PEG ratio of 2.18 as trading concluded yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 154, which puts it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

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


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