In the latest trading session, Chipotle Mexican Grill (CMG) closed at $31.86, marking a -1.73% move from the previous day. This change lagged the S&P 500's 0.22% gain on the day. Elsewhere, the Dow saw an upswing of 0.72%, while the tech-heavy Nasdaq appreciated by 0.21%.
The stock of Mexican food chain has fallen by 4.62% in the past month, lagging the Retail-Wholesale sector's loss of 0.02% and the S&P 500's gain of 6.04%.
Market participants will be closely following the financial results of Chipotle Mexican Grill in its upcoming release. The company is forecasted to report an EPS of $0.32, showcasing a 3.03% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $3.31 billion, showing a 8.19% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.13 per share and a revenue of $12.92 billion, indicating changes of -3.42% and +8.37%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Chipotle Mexican Grill. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.96% lower within the past month. Chipotle Mexican Grill presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Chipotle Mexican Grill is at present trading with a Forward P/E ratio of 28.69. This signifies a premium in comparison to the average Forward P/E of 20.69 for its industry.
Also, we should mention that CMG has a PEG ratio of 2.09. 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. By the end of yesterday's trading, the Retail - Restaurants industry had an average PEG ratio of 1.93.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 25% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).