Chart of the Day: Chipotle Mexican Grill is Sizzling

 The Chart of the Day belongs to the Mexican restaurant chain Chipotle Mexican Grill (CMG).  I found the stock by using Barchart's powerful screening functions to find stocks with the highest technical buy signals, highest Weighted Alpha, superior current momentum and having a Trend Seeker buy signal then used the Flipchart  feature to review the charts for consistent price appreciation. Since the Trend Seeker signaled a buy on 1/17 the stock gained 6.04%.

CMG Price vs Daily Moving Averages

Chipotle Mexican Grill, Inc. mainly develops and operates fast-casual, fresh Mexican food restaurants throughout the United States. As of 6/30/23, it operated 3,268 domestic units. The company also has 44 locations outside of the U.S., and 4 Pizzeria Locale restaurants. 

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the website when you read this report.

Barchart Technical Indicators:

  • 100% technical buy signals
  • 57.72+ Weighted Alpha
  • 45.95% gain in the last year
  • Trend Seeker buy signal
  • Above its 20, 50 and 100 day moving averages
  • 16 new highs and up 11.66% in the last month
  • Relative Strength Index 74.24%
  • Technical support level at $2,453.46
  • Recently traded at $2,470.85 with 50 day moving average of $2,290.56

Fundamental Factors:

  • Market Cap $68.13 billion
  • P/E 57.06
  • Wall Street projects Revenue will grow 14.00% this year and another 13.60% next year
  • Earnings are estimated to increase 34.80% this year, an additional 21.00% next year and continue to compound at an annual rate of 26.03% for the next 5 years

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock it's hard to make money swimming against the tide:

  • Wall Street analysts issued 22 strong buy, 2 buy, 9 hold and 1 sell recommendation this month
  • Analysts price targets are $1,850.00 to $3,000.00 - very wide range - with a consensus of $2,451.33
  • Value Line gives the stock an average rating of 3 with an 18 month price target of $2,660 for a 5% gain
  • CFRAs MarketScope has a 4 star buy rating but a 12 month price target of $2,630
  • 124,180 investors monitor the stock on Seeking Alpha

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.

On the date of publication, Jim Van Meerten did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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