Chipotle Stock (CMG) Gains but Lags Market

Chipotle Stock

Chipotle Stock (NYSE:CMG) finished the most recent trading day at $1,504.70, representing a movement of +0.13% compared to the previous trading session’s closing price. The stock gained less than the daily increase of 2.59% for the S&P 500. In other financial news, the Dow rose by 2.66%, while the tech-heavy Nasdaq gained 0.12%.

A month before today, shares of the Mexican food chain had dropped by 7.04%, outperforming both the Retail-Wholesale sector’s drop of 8.35% and the S&P 500’s drop of 9.22% during the same period.

Chipotle Mexican Grill (NYSE:CMG) will be trying to demonstrate its resilience as it approaches the date of its subsequent earnings report, which is currently scheduled for October 25, 2022. It is anticipated that the firm will announce earnings per share of $8.95, representing a growth of 27.49% compared to the same quarter in the previous year. Our most current average estimate calls for quarterly sales of $2.23 billion, which would represent a 14.41% increase from the same time a year earlier.

Chipotle Stock Price Analysis

Looking at the company for the entire year, our Zacks Consensus Estimates reveal that analysts are anticipating earnings of $32.50 per share and sales of $8.74 billion. The difference between these totals and the previous year’s would be +27.85% and +15.79%, respectively.

It is also essential to take note of the latest adjustments that have been made to the analyst projections for Chipotle Mexican Grill (NYSE:CMG). Recent changes are more likely to mirror the most recent near-term business developments. Given this information, we may look at upward adjustments to the estimates as an indication of confidence in the company’s future business prospects.

The momentum of share prices in the near term is said to be directly associated with these estimate revisions, according to the findings of some pieces of study. The Zacks Rank provides investors with the information they need to seize the opportunity presented by this circumstance. This model takes into account the alterations to the estimates and provides a grading system that is uncomplicated and applicable.

The Zacks Rank methodology, which has a track record of outperformance and ranges from #1 (Strong Buy) to #5 (Strong Sell), has a proven and independently audited track record, with #1 stocks returning an average of +25% annually since 1988. During the past month, the Zacks Consensus EPS estimate did not move at all. Chipotle Mexican Grill holds the third spot on the Zacks Rank list (Hold).

Chipotle stock (CMG) is presently valued at 46.23 on a forward price-to-earnings ratio, the ratio used by the market. This reflects a premium when compared to the average Forward P/E for its industry, which is 18.77.

It is also important to point out that CMG’s PEG ratio is at 1.98 at the moment. This measure is utilized in a manner that is comparable to that of the well-known P/E ratio; however, the PEG ratio also considers the stock’s anticipated earnings growth rate. At yesterday’s closing price, the PEG ratio for the Retail – Restaurants sector was sitting at an average of 1.72.

The Retail and Restaurant industry is included in the Retail and Wholesale sector of the economy. The Zacks Industry Rank for this category is 179, which places it in the worst 29% of the more than 250 different industries.

The Zacks Industry Rank evaluates the competitiveness of our various industry groupings by calculating the average Zacks Rank of the stocks that are contained within those categories. According to our research findings, the industries classified in the top 50% do much better than those rated in the bottom 50% by a margin of 2 to 1.


Featured Image:  Megapixl © Bigapplestock

Please See Disclaimer



About the author: Valerie Ablang is a freelance writer with a background in scientific research and an interest in stock market analysis. She previously worked as an article writer for various industrial niches. Aside from being a writer, she is also a professional chemist, wife, and mother to her son. She loves to spend her free time watching movies and learning creative design.