Why Chipotle Mexican Grill (CMG) Outpaced the Stock Market Today

Chipotle Mexican Grill (CMG) closed at $2,327.03 in the latest trading session, marking a +1.31% move from the prior day. This move outpaced the S&P 500's daily gain of 0.59%. On the other hand, the Dow registered a gain of 0.68%, and the technology-centric Nasdaq increased by 0.66%.

Prior to today's trading, shares of the Mexican food chain had gained 5.05% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.97% and lagged the S&P 500's gain of 5.16% in that time.

The upcoming earnings release of Chipotle Mexican Grill will be of great interest to investors. The company's earnings report is expected on February 6, 2024. The company is predicted to post an EPS of $9.60, indicating a 15.8% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $2.49 billion, up 14.06% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $44.04 per share and a revenue of $9.84 billion, representing changes of +34.35% and +13.99%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Chipotle Mexican Grill. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Chipotle Mexican Grill is currently sporting 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 52.16. This represents a premium compared to its industry's average Forward P/E of 21.79.

We can also see that CMG currently has a PEG ratio of 2.01. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 1.9 at yesterday's closing price.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 49, putting it in the top 20% 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.

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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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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