Chipotle Mexican Grill (CMG) Gains But Lags Market: What You Should Know

Chipotle Mexican Grill (CMG) closed the most recent trading day at $1,705.17, moving +0.68% from the previous trading session. This move lagged the S&P 500's daily gain of 0.69%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 0.2%.

Coming into today, shares of the Mexican food chain had gained 1.27% in the past month. In that same time, the Retail-Wholesale sector lost 9.94%, while the S&P 500 lost 9.94%.

Chipotle Mexican Grill will be looking to display strength as it nears its next earnings release, which is expected to be October 25, 2022. The company is expected to report EPS of $9.06, up 29.06% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.23 billion, up 14.41% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $32.50 per share and revenue of $8.74 billion, which would represent changes of +27.85% and +15.79%, respectively, from the prior year.

Investors should also note any recent changes 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 shows that these estimate changes are directly correlated with near-term stock prices. 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 remained stagnant. Chipotle Mexican Grill is holding a Zacks Rank of #3 (Hold) right now.

In terms of valuation, Chipotle Mexican Grill is currently trading at a Forward P/E ratio of 52.1. This represents a premium compared to its industry's average Forward P/E of 19.69.

Meanwhile, CMG's PEG ratio is currently 2.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Restaurants was holding an average PEG ratio of 2.14 at yesterday's closing price.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 33% 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.

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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.