Chipotle Mexican Grill (CMG) stock plummets as market gains: What you need to know

VShipotle Mexican Grill (CMG) closed at $1,306.80 in the last trading session, marking a change of -0.04% from the previous 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 gained 0.55%.

As of today, shares of the Mexican food chain have lost 6.42% over the past month. At the same time, the Retail-Wholesale sector lost 6.15%, while the S&P 500 lost 8.3%.

Investors are hoping for strength from Chipotle Mexican Grill as it nears its next earnings release, which is expected on July 26, 2022. On that day, Chipotle Mexican Grill is expected to report earnings of $5.66 per share, which would represent a year. – decrease of 24.13% over one year. Our most recent consensus estimate calls for quarterly revenue of $2.24 billion, up 18.56% from the prior year period.

Looking to 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 trading trends. With this in mind, we can view positive estimate revisions as a sign of optimism about the company’s business prospects.

Based on our research, we believe that these estimate revisions are directly related to the team’s close stock movements. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes into account these estimation changes and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system is proven and externally audited for outperformance, with #1 stocks returning an average of +25 % per year since 1988. The Zacks Consensus EPS estimate fell 0.3% over 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 to its industry average Forward P/E of 17.89.

Additionally, it is worth mentioning that CMG has a PEG ratio of 1.79. This popular measure is similar to the widely known P/E ratio, except that the PEG ratio also takes into account the company’s expected earnings growth rate. The retail-restaurant industry currently had an average PEG ratio of 1.72 as of yesterday’s close.

The Retail – Foodservice industry is part of the Retail – Wholesale sector. This group has a Zacks Industry ranking of 201, which places it in the bottom 21% of all 250+ industries.

The Zacks Industry Ranking assesses the strength of our industry groups by measuring the average Zacks Ranking of individual stocks within the groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.

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