In the latest trading session, Chipotle Mexican Grill (CMG – Free Report) closed at $57.92, marking a -0.12% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.16%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq decreased by 0.06%.
Prior to today’s trading, shares of the Mexican food chain had lost 11.67% over the past month. This has lagged the Retail-Wholesale sector’s loss of 4.61% and the S&P 500’s loss of 2.7% 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 4, 2025. The company’s earnings per share (EPS) are projected to be $0.24, reflecting a 14.29% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $2.85 billion, showing a 13.18% escalation compared to the year-ago quarter.
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. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there’s been a 0.27% rise in the Zacks Consensus EPS estimate. Chipotle Mexican Grill is currently a Zacks Rank #2 (Buy).
In terms of valuation, Chipotle Mexican Grill is presently being traded at a Forward P/E ratio of 44.18. This signifies a premium in comparison to the average Forward P/E of 23.01 for its industry.
Also, we should mention that CMG has a PEG ratio of 1.97. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. CMG’s industry had an average PEG ratio of 2.01 as of yesterday’s close.
The Retail – Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 155, this industry ranks in the bottom 39% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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