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Chipotle Mexican Grill (CMG) Flat As Market Sinks: What You Should Know

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Chipotle Mexican Grill (CMG - Free Report) ended the recent trading session at $59.44, demonstrating no swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.03%. Meanwhile, the Dow lost 0.61%, and the Nasdaq, a tech-heavy index, added 0.56%.

Coming into today, shares of the Mexican food chain had gained 2.39% in the past month. In that same time, the Retail-Wholesale sector lost 0.9%, while the S&P 500 gained 1.39%.

Market participants will be closely following the financial results of Chipotle Mexican Grill in its upcoming release. The company plans to announce its earnings on October 29, 2024. The company is forecasted to report an EPS of $0.25, showcasing an 8.7% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $2.82 billion, up 13.9% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $1.09 per share and a revenue of $11.34 billion, demonstrating changes of +21.11% and +14.9%, respectively, from the preceding year.

Any recent changes to analyst estimates for Chipotle Mexican Grill should also be noted by investors. 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 shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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 has moved 0.5% higher within the past month. Chipotle Mexican Grill currently has a Zacks Rank of #3 (Hold).

Investors should also note Chipotle Mexican Grill's current valuation metrics, including its Forward P/E ratio of 54.58. For comparison, its industry has an average Forward P/E of 22.33, which means Chipotle Mexican Grill is trading at a premium to the group.

It is also worth noting that CMG currently has a PEG ratio of 2.6. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Retail - Restaurants industry stood at 2.21 at the close of the market yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 143, finds itself in the bottom 44% echelons 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.

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


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