In the latest trading session, Chipotle Mexican Grill (CMG - Free Report) closed at $814.16, marking a -1.19% move from the previous day. This change lagged the S&P 500's 0.45% loss on the day. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.33%.
Heading into today, shares of the Mexican food chain had lost 1.69% over the past month, lagging the Retail-Wholesale sector's loss of 1.25% and the S&P 500's gain of 0.59% in that time.
Investors will be hoping for strength from CMG as it approaches its next earnings release, which is expected to be October 22, 2019. In that report, analysts expect CMG to post earnings of $3.15 per share. This would mark year-over-year growth of 45.83%. Our most recent consensus estimate is calling for quarterly revenue of $1.38 billion, up 12.35% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.38 per share and revenue of $5.49 billion, which would represent changes of +47.68% and +12.85%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for CMG. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.32% higher within the past month. CMG is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note CMG's current valuation metrics, including its Forward P/E ratio of 61.59. For comparison, its industry has an average Forward P/E of 21.9, which means CMG is trading at a premium to the group.
We can also see that CMG currently has a PEG ratio of 3.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 2.07 at yesterday's closing price.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 153, putting it in the bottom 40% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.