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Chipotle Mexican Grill (CMG) Suffers a Larger Drop Than the General Market: Key Insights

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The most recent trading session ended with Chipotle Mexican Grill (CMG - Free Report) standing at $56.70, reflecting a -1.49% shift from the previouse trading day's closing. This move lagged the S&P 500's daily loss of 0.29%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, lost 0.5%.

Shares of the Mexican food chain witnessed a loss of 6.36% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 3.53% and the S&P 500's gain of 2.52%.

Analysts and investors alike will be keeping a close eye on the performance of Chipotle Mexican Grill in its upcoming earnings disclosure. The company's earnings report is set to go public on February 4, 2025. The company's upcoming EPS is projected at $0.24, signifying a 14.29% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $2.85 billion, up 13.35% from the year-ago period.

It is also important to note the recent changes to analyst estimates for Chipotle Mexican Grill. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.93% higher within the past month. Chipotle Mexican Grill presently features a Zacks Rank of #2 (Buy).

Looking at its valuation, Chipotle Mexican Grill is holding a Forward P/E ratio of 43.6. This expresses a premium compared to the average Forward P/E of 23.62 of its industry.

We can additionally observe that CMG currently boasts a PEG ratio of 1.93. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Retail - Restaurants industry stood at 2.04 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 78, finds itself in the top 32% echelons of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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