In the latest trading session, Chipotle Mexican Grill (CMG) closed at $878.15, marking a +0.91% move from the previous day. This move outpaced the S&P 500's daily gain of 0.39%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.34%.
Prior to today's trading, shares of the Mexican food chain had gained 4.36% over the past month. This has outpaced the Retail-Wholesale sector's gain of 3.88% and lagged the S&P 500's gain of 4.73% in that time.
Wall Street will be looking for positivity from CMG as it approaches its next earnings report date. This is expected to be February 4, 2020. On that day, CMG is projected to report earnings of $2.69 per share, which would represent year-over-year growth of 56.4%. Meanwhile, our latest consensus estimate is calling for revenue of $1.40 billion, up 13.98% from the prior-year quarter.
Any recent changes to analyst estimates for CMG should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.56% higher. CMG currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that CMG has a Forward P/E ratio of 48.65 right now. This valuation marks a premium compared to its industry's average Forward P/E of 22.35.
Also, we should mention that CMG has a PEG ratio of 2.47. 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. Retail - Restaurants stocks are, on average, holding a PEG ratio of 2.02 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 84, putting it in the top 33% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
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