In the latest trading session, Chipotle Mexican Grill (CMG) closed at $856.73, marking a -0.39% move from the previous day. This change lagged the S&P 500's daily gain of 0.49%. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq added 0.67%.
Heading into today, shares of the Mexican food chain had gained 5.18% over the past month, outpacing the Retail-Wholesale sector's gain of 4.11% and the S&P 500's gain of 3.03% in that time.
CMG will be looking to display strength as it nears its next earnings release, which is expected to be February 4, 2020. The company is expected to report EPS of $2.67, up 55.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.40 billion, up 13.9% from the year-ago period.
Investors might also notice recent changes to analyst estimates for CMG. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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 remained stagnant within the past month. CMG is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note CMG's current valuation metrics, including its Forward P/E ratio of 48.35. This represents a premium compared to its industry's average Forward P/E of 21.8.
It is also worth noting that CMG currently has a PEG ratio of 2.45. 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. CMG's industry had an average PEG ratio of 2.07 as of yesterday's close.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 78, which puts it in the top 31% 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.
To follow CMG in the coming trading sessions, be sure to utilize Zacks.com.
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Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
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