Chipotle Mexican Grill (CMG) closed at $748.80 in the latest trading session, marking a +1.25% move from the prior day. This change outpaced the S&P 500's 0.48% loss on the day. Elsewhere, the Dow lost 0.43%, while the tech-heavy Nasdaq lost 0.78%.
Prior to today's trading, shares of the Mexican food chain had gained 6.84% over the past month. This has lagged the Retail-Wholesale sector's gain of 8.87% and outpaced the S&P 500's gain of 5.97% in that time.
CMG will be looking to display strength as it nears its next earnings release, which is expected to be July 23, 2019. In that report, analysts expect CMG to post earnings of $3.71 per share. This would mark year-over-year growth of 29.27%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.40 billion, up 10.63% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.01 per share and revenue of $5.41 billion. These totals would mark changes of +43.6% and +11.22%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for CMG. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 0.08% higher within the past month. CMG is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that CMG has a Forward P/E ratio of 56.86 right now. Its industry sports an average Forward P/E of 24.04, so we one might conclude that CMG is trading at a premium comparatively.
Also, we should mention that CMG has a PEG ratio of 2.96. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.16 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 91, putting it in the top 36% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
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