Back to top

Image: Bigstock

Chipotle Mexican Grill (CMG) Rises But Trails Market: What Investors Should Know

Read MoreHide Full Article

The most recent trading session ended with Chipotle Mexican Grill (CMG - Free Report) standing at $58.65, reflecting a +0.55% shift from the previouse trading day's closing. This move lagged the S&P 500's daily gain of 0.61%. Elsewhere, the Dow saw an upswing of 0.97%, while the tech-heavy Nasdaq appreciated by 0.33%.

The Mexican food chain's stock has climbed by 3.51% in the past month, falling short of the Retail-Wholesale sector's gain of 5.88% and the S&P 500's gain of 5.36%.

The investment community will be paying close attention to the earnings performance of Chipotle Mexican Grill in its upcoming release. The company is slated to reveal its earnings on October 29, 2024. On that day, Chipotle Mexican Grill is projected to report earnings of $0.24 per share, which would represent year-over-year growth of 4.35%. Simultaneously, our latest consensus estimate expects the revenue to be $2.81 billion, showing a 13.68% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.09 per share and revenue of $11.33 billion, indicating changes of +21.11% and +14.81%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Chipotle Mexican Grill. These revisions help to show the ever-changing nature 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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 0.13% higher within the past month. Chipotle Mexican Grill presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Chipotle Mexican Grill currently has a Forward P/E ratio of 53.76. Its industry sports an average Forward P/E of 21.56, so one might conclude that Chipotle Mexican Grill is trading at a premium comparatively.

Investors should also note that CMG has a PEG ratio of 2.43 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Retail - Restaurants industry held an average PEG ratio of 2.07.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 38% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Chipotle Mexican Grill, Inc. (CMG) - free report >>

Published in