Yahoo Finance Chipotle Mexican Grill (CMG) Gains But Lags Market: What You Should Know
Chipotle Mexican Grill (CMG) closed the most recent trading day at $1,656.72, moving +0.23% from the previous trading session. This change lagged the S&P 500's 1.42% gain on the day. At the same time, the Dow added 1%, and the tech-heavy Nasdaq gained 5.16%.
Prior to today's trading, shares of the Mexican food chain had gained 10.85% over the past month. This has outpaced the Retail-Wholesale sector's loss of 0.41% and the S&P 500's gain of 0.27% in that time.
Investors will be hoping for strength from Chipotle Mexican Grill as it approaches its next earnings release, which is expected to be April 25, 2023. On that day, Chipotle Mexican Grill is projected to report earnings of $8.81 per share, which would represent year-over-year growth of 54.56%. Meanwhile, our latest consensus estimate is calling for revenue of $2.33 billion, up 15.32% from the prior-year quarter.
CMG's full-year Zacks Consensus Estimates are calling for earnings of $41.38 per share and revenue of $9.77 billion. These results would represent year-over-year changes of +26.24% and +13.11%, respectively.
Investors should also note any recent changes to analyst estimates for Chipotle Mexican Grill. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.06% lower within the past month. Chipotle Mexican Grill is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Chipotle Mexican Grill has a Forward P/E ratio of 39.94 right now. Its industry sports an average Forward P/E of 21.58, so we one might conclude that Chipotle Mexican Grill is trading at a premium comparatively.
It is also worth noting that CMG currently has a PEG ratio of 1.52. 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. CMG's industry had an average PEG ratio of 1.93 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
