Why Chipotle Mexican Grill (CMG) Dipped More Than Broader Market Today

In the latest close session, Chipotle Mexican Grill (CMG) was down 2.82% at $55.46. The stock's performance was behind the S&P 500's daily loss of 0.79%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw a decrease of 0.92%. The Mexican food chain's shares have seen an increase of 8.7% over the last month, surpassing the Retail-Wholesale sector's gain of 2.47% and the S&P 500's gain of 5.22%.Market participants will be closely following the financial results of Chipotle Mexican Grill in its upcoming release. The company plans to announce its earnings on July 23, 2025. The company's upcoming EPS is projected at $0.32, signifying a 5.88% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $3.1 billion, indicating a 4.36% upward movement from the same quarter last year. CMG's full-year Zacks Consensus Estimates are calling for earnings of $1.21 per share and revenue of $12.23 billion. These results would represent year-over-year changes of +8.04% and +8.1%, respectively. It is also important to note the recent changes to analyst estimates for Chipotle Mexican Grill. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% increase. As of now, Chipotle Mexican Grill holds a Zacks Rank of #3 (Hold). In terms of valuation, Chipotle Mexican Grill is presently being traded at a Forward P/E ratio of 47.28. Its industry sports an average Forward P/E of 22.34, so one might conclude that Chipotle Mexican Grill is trading at a premium comparatively. Investors should also note that CMG has a PEG ratio of 2.83 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Retail - Restaurants industry stood at 2.57 at the close of the market yesterday. The Retail - Restaurants industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 36% of all industries, numbering over 250. The Zacks Industry Rank gauges the strength of our individual 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. Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Should You Invest in Chipotle Mexican Grill, Inc. (CMG)?Before you invest in Chipotle Mexican Grill, Inc. (CMG), want to know the best stocks to buy for the next 30 days? Check out Zacks Investment Research for our free report on the 7 best stocks to buy.Zacks Investment Research has been committed to providing investors with tools and independent research since 1978. For more than a quarter century, the Zacks Rank stock-rating system has more than doubled the S&P 500 with an average gain of +24.08% per year. (These returns cover a period from January 1, 1988 through May 6, 2024.)Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks