Chipotle Mexican Grill (CMG – Free Report) closed the most recent trading day at $61.47, moving -1.24% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.04% for the day. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Shares of the Mexican food chain have appreciated by 0.31% over the course of the past month, underperforming the Retail-Wholesale sector’s gain of 2.87% and the S&P 500’s gain of 1.05%.
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 4, 2025. In that report, analysts expect Chipotle Mexican Grill to post earnings of $0.24 per share. This would mark year-over-year growth of 14.29%. In the meantime, our current consensus estimate forecasts the revenue to be $2.85 billion, indicating a 13.15% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.11 per share and a revenue of $11.32 billion, indicating changes of +23.33% and +14.64%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Chipotle Mexican Grill. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.07% upward. Chipotle Mexican Grill currently has a Zacks Rank of #3 (Hold).
From a valuation perspective, Chipotle Mexican Grill is currently exchanging hands at a Forward P/E ratio of 56.09. This represents a premium compared to its industry’s average Forward P/E of 25.02.
We can additionally observe that CMG currently boasts a PEG ratio of 2.5. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The average PEG ratio for the Retail – Restaurants industry stood at 2.3 at the close of the market yesterday.
The Retail – Restaurants industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 125, positioning it in the top 50% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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