Chipotle Stock (CMG) Drops More Than Broader Markets: What You Should Know

Chipotle Stock

The most recent trading session for Chipotle Mexican Grill Inc (NYSE:CMG) ended with the Chipotle stock price reaching $1,531.99. This is a change of -1.64% from the previous trading session. This move lagged behind the daily loss of 1.03% seen by the S&P 500. At the same time, the Dow fell by 1.11 percent, while the tech-focused Nasdaq rose by 0.02 percent.

Prior to the opening of trade today, the shares of the Mexican restaurant chain had already fallen by 4.32% over the course of the prior month. This decline occurred throughout the course of the previous month. This decline was less severe than the 10.27% loss that the Retail-Wholesale sector had during the same time period and the 10.4% loss that the S&P 500 experienced during the same time period.

Chipotle Stock Gains

Chipotle Mexican Grill is expected to disclose its subsequent profits on October 25, 2022, so investors will be monitoring the firm attentively as the date approaches in the hopes of seeing additional growth. According to the poll results, industry experts predict Chipotle Mexican Grill will report earnings of $9.06 per share. This is a 29.06% increase over the previous year. Meanwhile, our most current average forecast is for revenues of $2.23 billion, representing a 14.41% gain over the same period last year.

When considering the entire year, our Zacks Consensus Estimates indicate that analysts anticipate earnings of $32.50 per share and sales of $8.74 billion. Compared to the previous year, these sums would represent shifts of +27.85% and +15.79%, respectively.

The chipotle stock should also be monitored for any recent revisions to analyst projections, which investors should take notice of. These updates serve to demonstrate the fluid nature of short-term business trends by illustrating how they are constantly altering. As a result, we might see reasonable estimate revisions as a good indication of the firm’s business prospects.

According to the findings of our investigation, these estimation adjustments have a clear correlation with stock prices in the near term. Utilizing the Zacks Rank is one way for investors to make the most of this situation. This model takes into account the alterations to the estimates and gives a straightforward and actionable scoring system.

The Zacks Rank system, which goes from #1 (Strong Buy) to #5 (Strong Sell), has an excellent track record of outperformance, with #1 stocks having an average yearly return of +25% since 1988. The Zacks Rank system was developed by Zacks Investment Research, which was founded in 1988. 

Chipotle stock has a forward price-to-earnings ratio of 47.92, which indicates that the company is valued relatively highly. When contrasted with the average Forward P/E of 18.47 for its industry, this price shows a premium.

Another crucial fact about Chipotle Stock is that its PEG ratio is presently 1.8. The PEG ratio is comparable to the popular P/E ratio, but it also factors in the stock’s predicted profit growth rate. At the closing of trading, the average PEG ratio in the retail and restaurant business sector was 1.83.

The Retail and Restaurant industry may be found within the Wholesale and Retail Trade category. This organization is ranked 178 out of more than 250 different industries by Zacks, placing it in the lowest 30 percent of all those industries.

The Zacks Industry Rank places industries in the order of best to worst based on the average Zacks Rank of the firms that make up each of these categories. The rank is given in terms of the Zacks Rank. According to the findings of our research, the industries that received ratings in the top 50% do much better than those that received ratings in the bottom 50%.


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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.