In the latest trading session, Chipotle Mexican Grill (CMG) closed at $1,056.45, marking a -1.11% move from the previous day. This change lagged the S&P 500's 0.45% gain on the day. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.52%.
Coming into today, shares of the Mexican food chain had gained 1.78% in the past month. In that same time, the Retail-Wholesale sector gained 7.8%, while the S&P 500 gained 2.08%.
Wall Street will be looking for positivity from CMG as it approaches its next earnings report date. This is expected to be July 22, 2020. The company is expected to report EPS of $0.03, down 99.25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.29 billion, down 9.98% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.82 per share and revenue of $5.64 billion. These totals would mark changes of -37.22% and +1.03%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for CMG. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 7.75% 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 121.09 right now. This valuation marks a premium compared to its industry's average Forward P/E of 42.23.
It is also worth noting that CMG currently has a PEG ratio of 8.05. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 4.66 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 42, which puts it in the top 17% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
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