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Chipotle Mexican Grill (CMG) Gains But Lags Market: What You Should Know

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Chipotle Mexican Grill (CMG) closed the most recent trading day at $1,261.24, moving +1.26% from the previous trading session. This move lagged the S&P 500's daily gain of 2.45%. Meanwhile, the Dow gained 2.15%, and the Nasdaq, a tech-heavy index, added 0.18%.

Prior to today's trading, shares of the Mexican food chain had lost 3.43% over the past month. This has lagged the Retail-Wholesale sector's gain of 0.44% and was narrower than the S&P 500's loss of 5.71% in that time.

Wall Street will be looking for positivity from Chipotle Mexican Grill as it approaches its next earnings report date. This is expected to be July 26, 2022. On that day, Chipotle Mexican Grill is projected to report earnings of $9.04 per share, which would represent year-over-year growth of 21.18%. Our most recent consensus estimate is calling for quarterly revenue of $2.24 billion, up 18.56% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $31.45 per share and revenue of $8.79 billion. These totals would mark changes of +23.72% and +16.47%, respectively, from last 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.3% lower within the past month. Chipotle Mexican Grill is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Chipotle Mexican Grill is currently trading at a Forward P/E ratio of 39.6. This represents a premium compared to its industry's average Forward P/E of 17.36.

Investors should also note that CMG has a PEG ratio of 1.71 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.71 at yesterday's closing price.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 197, which puts it in the bottom 23% of all 250+ industries.

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

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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