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

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In the latest trading session, Chipotle Mexican Grill (CMG - Free Report) closed at $56.08, marking a +0.81% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 1.01% for the day. Elsewhere, the Dow saw an upswing of 0.55%, while the tech-heavy Nasdaq appreciated by 1.13%.

The Mexican food chain's shares have seen an increase of 4.06% over the last month, surpassing the Retail-Wholesale sector's gain of 1.3% and the S&P 500's gain of 2.5%.

Investors will be eagerly watching for the performance of Chipotle Mexican Grill in its upcoming earnings disclosure. In that report, analysts expect Chipotle Mexican Grill to post earnings of $0.24 per share. This would mark year-over-year growth of 4.35%. In the meantime, our current consensus estimate forecasts the revenue to be $2.81 billion, indicating a 13.64% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.08 per share and a revenue of $11.33 billion, signifying shifts of +20% and +14.78%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Chipotle Mexican Grill. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.21% fall in the Zacks Consensus EPS estimate. Currently, Chipotle Mexican Grill is carrying a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Chipotle Mexican Grill has a Forward P/E ratio of 51.34 right now. For comparison, its industry has an average Forward P/E of 20.38, which means Chipotle Mexican Grill is trading at a premium to the group.

Investors should also note that CMG has a PEG ratio of 2.32 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Retail - Restaurants industry had an average PEG ratio of 2.08 as trading concluded yesterday.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 169, finds itself in the bottom 34% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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