Chipotle Mexican Grill (CMG) Stock Moves -0.12%: What You Should Know

In the latest trading session, Chipotle Mexican Grill (CMG) closed at $3,210.49, marking a -0.12% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.16% for the day. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq decreased by 0.18%.

Shares of the Mexican food chain witnessed a gain of 2.43% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 1% and underperforming the S&P 500’s gain of 3.15%.

Market participants will be closely following the financial results of Chipotle Mexican Grill in its upcoming release. The company plans to announce its earnings on July 24, 2024. The company is forecasted to report an EPS of $15.58, showcasing a 23.16% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.92 billion, indicating a 16.26% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $55.31 per share and a revenue of $11.35 billion, indicating changes of +23.29% and +14.97%, respectively, from the former year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Chipotle Mexican Grill. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there’s been a 0.07% rise in the Zacks Consensus EPS estimate. Chipotle Mexican Grill currently has a Zacks Rank of #2 (Buy).

In the context of valuation, Chipotle Mexican Grill is at present trading with a Forward P/E ratio of 58.11. This valuation marks a premium compared to its industry’s average Forward P/E of 19.43.

We can additionally observe that CMG currently boasts a PEG ratio of 2.56. 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. By the end of yesterday’s trading, the Retail – Restaurants industry had an average PEG ratio of 1.74.

Story continues

The Retail – Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 149, positioning it in the bottom 41% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research