Chipotle Mexican Grill (CMG) Showing Signs Of Being A Momo Momentum Stock
- CMG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $255.2 million.
- CMG has a PE ratio of 59.2.
- CMG is currently in the upper 30% of its 1-year range.
- CMG is in the upper 25% of its 20-day range.
- CMG is in the upper 35% of its 5-day range.
- CMG is currently trading above yesterday's high.
- CMG has experienced a gap between today's open and yesterday's close of 0.5%.
'Momo Momentum' stocks are valuable stocks to watch for a variety of reasons including historical back testing and price action. Market technicians refer to such stocks as being in a mark-up phase before a possible distribution period and price decline. Technical analysts and traders frequently find that the factors referenced above tend to create a temporary burst of strong wind in a stock's sail. Nevertheless, all successful traders must excel at maximizing gains while keeping losses to an absolute minimum. For that reason, the holding period on momo momentum stocks must always be a primary consideration, and this part of the puzzle is ultimately at the discretion of each individual's risk tolerance and portfolio risk management skills. EXCLUSIVE OFFER: Get the inside scoop on opportunities in CMG with the Ticky from Trade-Ideas. See the FREE profile for CMG NOW at Trade-Ideas More details on CMG: Chipotle Mexican Grill, Inc., together with its subsidiaries, develops and operates fast-casual and fresh Mexican food restaurants. As of July 21, 2014, it operated approximately 1,600 restaurants; and 7 ShopHouse Southeast Asian Kitchen restaurants. CMG has a PE ratio of 59.2. Currently there are 13 analysts that rate Chipotle Mexican Grill a buy, no analysts rate it a sell, and 9 rate it a hold. The average volume for Chipotle Mexican Grill has been 444,000 shares per day over the past 30 days. Chipotle Mexican Grill has a market cap of $20.8 billion and is part of the services sector and leisure industry. The stock has a beta of 0.93 and a short float of 4.4% with 3.27 days to cover. Shares are up 26.1% year-to-date as of the close of trading on Friday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Chipotle Mexican Grill as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 5.8%. Since the same quarter one year prior, revenues rose by 28.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 66.09% over the past year, a rise that has exceeded that of the S&P 500 Index. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- CHIPOTLE MEXICAN GRILL INC has improved earnings per share by 24.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CHIPOTLE MEXICAN GRILL INC increased its bottom line by earning $10.46 versus $8.75 in the prior year. This year, the market expects an improvement in earnings ($13.65 versus $10.46).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 25.5% when compared to the same quarter one year prior, rising from $87.85 million to $110.27 million.
- Net operating cash flow has increased to $180.65 million or 26.77% when compared to the same quarter last year. In addition, CHIPOTLE MEXICAN GRILL INC has also vastly surpassed the industry average cash flow growth rate of -26.36%.
- You can view the full Chipotle Mexican Grill Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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