Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.

Trade-Ideas LLC identified

Chipotle Mexican Grill

(

CMG

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Chipotle Mexican Grill as such a stock due to the following factors:

  • CMG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $776.6 million.
  • CMG has traded 9,959 shares today.
  • CMG is trading at a new lifetime high.

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 April 21, 2015, it operated approximately 1,800 restaurants, including 19 Chipotle restaurants and 10 ShopHouse Southeast Asian Kitchen restaurants. CMG has a PE ratio of 44. Currently there are 14 analysts that rate Chipotle Mexican Grill a buy, no analysts rate it a sell, and 10 rate it a hold.

The average volume for Chipotle Mexican Grill has been 510,900 shares per day over the past 30 days. Chipotle Mexican Grill has a market cap of $20.9 billion and is part of the services sector and leisure industry. The stock has a beta of 0.82 and a short float of 5.2% with 1.31 days to cover. Shares are up 6% year-to-date as of the close of trading on Friday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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 revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. We feel its 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 came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues rose by 14.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, CHIPOTLE MEXICAN GRILL INC's return on equity exceeds that of both the industry average and the S&P 500.
  • CHIPOTLE MEXICAN GRILL INC has improved earnings per share by 27.1% 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 $14.13 versus $10.46 in the prior year. This year, the market expects an improvement in earnings ($17.39 versus $14.13).
  • 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 27.1% when compared to the same quarter one year prior, rising from $110.27 million to $140.20 million.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.