Chipotle Mexican Grill (CMG) Rises Yet Lags Behind Market: Some Facts Worth Knowing

In the latest market close, Chipotle Mexican Grill (CMG) reached $2,340, with a +0.85% movement compared to the previous day. The stock fell short of the S&P 500, which registered a gain of 1.37% for the day. On the other hand, the Dow registered a gain of 1.4%, and the technology-centric Nasdaq increased by 1.38%.

Shares of the Mexican food chain witnessed a gain of 7.13% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 5.12% and the S&P 500's gain of 5.37%.

The investment community will be paying close attention to the earnings performance of Chipotle Mexican Grill in its upcoming release. The company is slated to reveal its earnings on February 6, 2024. It is anticipated that the company will report an EPS of $9.60, marking a 15.8% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.49 billion, indicating a 14.06% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $44.04 per share and revenue of $9.84 billion, indicating changes of +34.35% and +13.99%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for Chipotle Mexican Grill. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Chipotle Mexican Grill boasts a Zacks Rank of #3 (Hold).

In terms of valuation, Chipotle Mexican Grill is currently trading at a Forward P/E ratio of 52.69. For comparison, its industry has an average Forward P/E of 21.65, which means Chipotle Mexican Grill is trading at a premium to the group.

Meanwhile, CMG's PEG ratio is currently 2.03. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Retail - Restaurants stocks are, on average, holding a PEG ratio of 1.9 based on yesterday's closing prices.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 51, finds itself in the top 21% echelons 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.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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