In the latest trading session, Chipotle Mexican Grill (CMG) closed at $819.22, marking a -0.64% move from the previous day. This change lagged the S&P 500's 0.62% gain on the day. Meanwhile, the Dow gained 0.61%, and the Nasdaq, a tech-heavy index, added 1.05%.
Heading into today, shares of the Mexican food chain had lost 2.09% over the past month, lagging the Retail-Wholesale sector's gain of 2.71% and the S&P 500's gain of 3.85% 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 October 22, 2019. In that report, analysts expect CMG to post earnings of $3.15 per share. This would mark year-over-year growth of 45.83%. Meanwhile, our latest consensus estimate is calling for revenue of $1.38 billion, up 12.29% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.36 per share and revenue of $5.49 billion, which would represent changes of +47.46% and +12.81%, respectively, from the prior year.
Any recent changes to analyst estimates for CMG should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.77% higher. CMG currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, CMG is holding a Forward P/E ratio of 61.71. Its industry sports an average Forward P/E of 23.8, so we one might conclude that CMG is trading at a premium comparatively.
We can also see that CMG currently has a PEG ratio of 3.35. 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 2.23 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 147, putting it in the bottom 43% 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.
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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