In the latest trading session, Chipotle Mexican Grill (CMG) closed at $1,022.88, marking a -0.86% move from the previous day. This change lagged the S&P 500's 0.36% loss on the day. At the same time, the Dow lost 0.65%, and the tech-heavy Nasdaq gained 0.15%.
CMG will be looking to display strength as it nears its next earnings release, which is expected to be July 22, 2020. The company is expected to report EPS of -$0.02, down 100.5% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.28 billion, down 10.98% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.42 per share and revenue of $5.60 billion. These totals would mark changes of -40.07% and +0.2%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for CMG. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 12.87% higher. CMG is currently a Zacks Rank #3 (Hold).
In terms of valuation, CMG is currently trading at a Forward P/E ratio of 122.57. This represents a premium compared to its industry's average Forward P/E of 41.21.
It is also worth noting that CMG currently has a PEG ratio of 8.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Restaurants stocks are, on average, holding a PEG ratio of 4.8 based on yesterday's closing prices.
The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report
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