Chipotle Mexican Grill (CMG) Stock Sinks As Market Gains: What You Should Know

Chipotle Mexican Grill (CMG) closed at $1,306.80 in the latest trading session, marking a -0.04% move from the prior day. This change lagged the S&P 500's 1.06% gain on the day. Elsewhere, the Dow gained 1.05%, while the tech-heavy Nasdaq added 0.55%.

Coming into today, shares of the Mexican food chain had lost 6.42% in the past month. In that same time, the Retail-Wholesale sector lost 6.15%, while the S&P 500 lost 8.3%.

Investors will be hoping for strength from Chipotle Mexican Grill as it approaches its next earnings release, which is expected to be July 26, 2022. On that day, Chipotle Mexican Grill is projected to report earnings of $5.66 per share, which would represent a year-over-year decline of 24.13%. Our most recent consensus estimate is calling for quarterly revenue of $2.24 billion, up 18.56% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $31.45 per share and revenue of $8.79 billion. These totals would mark changes of +23.72% and +16.47%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Chipotle Mexican Grill. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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. The Zacks Consensus EPS estimate has moved 0.3% lower within the past month. Chipotle Mexican Grill is currently a Zacks Rank #3 (Hold).

Investors should also note Chipotle Mexican Grill's current valuation metrics, including its Forward P/E ratio of 41.56. This represents a premium compared to its industry's average Forward P/E of 17.89.

Also, we should mention that CMG has a PEG ratio of 1.79. 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 industry currently had an average PEG ratio of 1.72 as of yesterday's close.

The Retail - Restaurants industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 201, putting it in the bottom 21% of all 250+ industries.

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.

To follow CMG in the coming trading sessions, be sure to utilize Zacks.com.

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