Chipotle Mexican Grill (CMG) closed the most recent trading day at $836.79, moving -0.22% from the previous trading session. This change lagged the S&P 500’s daily of 0%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.18%.
Prior to today’s trading, shares of the Mexican food chain had gained 2.68% over the past month. This has lagged the Retail-Wholesale sector’s gain of 3.57% and the S&P 500’s gain of 3.37% in that time.
Wall Street will be looking for positivity from CMG as it approaches its next earnings report date. This is expected to be February 4, 2020. In that report, analysts expect CMG to post earnings of $2.67 per share. This would mark year-over-year growth of 55.23%. Our most recent consensus estimate is calling for quarterly revenue of $1.40 billion, up 13.9% from the year-ago period.
CMG’s full-year Zacks Consensus Estimates are calling for earnings of $13.87 per share and revenue of $5.54 billion. These results would represent year-over-year changes of +53.09% and +13.89%, respectively.
Any recent changes to analyst estimates for CMG should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 0.19% higher. CMG currently has a Zacks Rank of #2 (Buy).
In terms of valuation, CMG is currently trading at a Forward P/E ratio of 60.46. For comparison, its industry has an average Forward P/E of 23.59, which means CMG is trading at a premium to the group.
It is also worth noting that CMG currently has a PEG ratio of 3.07. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. Retail – Restaurants stocks are, on average, holding a PEG ratio of 2.24 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 45, which puts it in the top 18% 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.
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