Chipotle Mexican Grill (CMG) Gains But Lags Market: What You Should Know
Chipotle Mexican Grill (CMG) closed at $1,342.53 in the latest trading session, marking a +1.77% move from the prior day. The stock lagged the S&P 500's daily gain of 2.76%. Meanwhile, the Dow gained 2.43%, and the Nasdaq, a tech-heavy index, added 0.05%.
Heading into today, shares of the Mexican food chain had gained 5.91% over the past month, lagging the Retail-Wholesale sector's gain of 6.16% and outpacing the S&P 500's gain of 4.44% in that time.
Investors will be hoping for strength from Chipotle Mexican Grill as it approaches its next earnings release, which is expected to be July 26, 2022. In that report, analysts expect Chipotle Mexican Grill to post earnings of $9.04 per share. This would mark year-over-year growth of 21.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.24 billion, up 18.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $31.25 per share and revenue of $8.78 billion, which would represent changes of +22.93% and +16.35%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Chipotle Mexican Grill. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 1% lower. Chipotle Mexican Grill currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Chipotle Mexican Grill currently has a Forward P/E ratio of 42.22. This represents a premium compared to its industry's average Forward P/E of 19.21.
We can also see that CMG currently has a PEG ratio of 1.82. 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. CMG's industry had an average PEG ratio of 1.82 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 195, putting it in the bottom 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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
