In the latest trading session, Chipotle Mexican Grill (CMG - Free Report) closed at $838.11, marking a -0.02% move from the previous day. This change lagged the S&P 500's 1.3% gain on the day. At the same time, the Dow added 1.41%, and the tech-heavy Nasdaq gained 1.75%.
Prior to today's trading, shares of the Mexican food chain had gained 5.44% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.12% and the S&P 500's gain of 0.46% in that time.
CMG will be looking to display strength as it nears its next earnings release, which is expected to be October 22, 2019. The company is expected to report EPS of $3.13, up 44.91% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.37 billion, up 12.11% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.34 per share and revenue of $5.48 billion, which would represent changes of +47.24% and +12.72%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for CMG. These recent revisions tend to reflect the evolving nature of short-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. Over the past month, the Zacks Consensus EPS estimate has moved 0.57% higher. CMG is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, CMG is currently trading at a Forward P/E ratio of 62.87. Its industry sports an average Forward P/E of 22.29, so we one might conclude that CMG is trading at a premium comparatively.
It is also worth noting that CMG currently has a PEG ratio of 3.35. 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 was holding an average PEG ratio of 2.46 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.