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In the latest market close, Chipotle Mexican Grill (CMG) hit $2,797.56, representing a +0.87% change from the prior day. The stock outperformed the S&P 500, which rose 0.57% on the day. Meanwhile, the Dow Jones Industrial Average rose 0.83%, and the tech-heavy Nasdaq rose 0.39%.
Shares of the Mexican restaurant chain rose 6.74% last month, leading the Retail & Wholesale sector’s gain of 2.73% and the S&P 500’s gain of 2.97%.
The investment community will be paying close attention to the earnings performance of Chipotle Mexican Grill’s upcoming releases. The company plans to announce its results on April 24, 2024. The company is expected to report EPS of $11.36, representing a year-over-year increase of 8.19%. At the same time, our most recent consensus estimate is projecting revenue of $2.66 billion, up 12.27% from the year-ago period.
CMG’s full-year Zacks Consensus Estimates are calling for earnings of $53.11 per share and revenue of $11.22 billion. These results represent year-over-year changes of +18.39% and +13.63%, respectively.
Additionally, investors should note recent revisions to analyst estimates for Chipotle Mexican Grill. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research suggests that these estimate changes have a direct relationship with future stock performance. To benefit from this, we have created the Zacks Rank, a proprietary model that incorporates these estimate changes to provide an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell) and has an impressive, outside-audited track record of outperforming expectations, with #1 stocks generating an average annual return of +25%. It has come true. The Zacks Consensus EPS estimate has moved 0.01% higher over the past month. Chipotle Mexican Grill currently carries a Zacks Rank #3 (Hold).
In terms of valuation, Chipotle Mexican Grill is currently trading at a forward P/E ratio of 52.23. For comparison, the average Forward P/E in its industry is 21, which means Chipotle Mexican Grill is trading at a premium to the group.
It is also important to note that CMG is currently trading with a PEG ratio of 2.39. The PEG ratio is similar to the commonly used P/E ratio, but this metric also incorporates a company’s expected earnings growth rate. As of yesterday’s close, the average PEG ratio for the Retail & Restaurants industry was 1.97.
The retail-restaurant industry is part of the retail-wholesale sector. This group has a Zacks Industry Rank of 146, which puts it in the bottom 43% of all 250+ industries.
The Zacks Industry Rank evaluates the vitality of specific industry groups by calculating the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to track these and other stock price movement metrics during upcoming trading sessions.
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Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report
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