Services Standout Chipotle Mexican Grill Inc. (CMG) Making Gains Today

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Chipotle Mexican Grill ( CMG) pushed the Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 0.1%. By the end of trading, Chipotle Mexican Grill rose $10.58 (3.2%) to $341.91 on average volume. Throughout the day, 775,135 shares of Chipotle Mexican Grill exchanged hands as compared to its average daily volume of 557,800 shares. The stock ranged in a price between $327.28-$342 after having opened the day at $329.77 as compared to the previous trading day's close of $331.33. Other companies within the Services sector that increased today were: Era Group ( ERA), up 22.2%, Sinclair Broadcast Group ( SBGI), up 16.5%, Spanish Broadcasting System ( SBSA), up 15.4%, and Dex One ( DEXO), up 15%.
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Chipotle Mexican Grill, Inc. develops and operates fast casual and fresh Mexican food restaurants. Its restaurants primarily offer burritos, tacos, burrito bowls, and salads. Chipotle Mexican Grill has a market cap of $10.63 billion and is part of the leisure industry. The company has a P/E ratio of 39.3, above the S&P 500 P/E ratio of 17.7. Shares are up 11.4% year to date as of the close of trading on Thursday. Currently there are six analysts that rate Chipotle Mexican Grill a buy, one analyst rates it a sell, and 14 rate it a hold.

TheStreet Ratings rates Chipotle Mexican Grill as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the negative front, Orchard Supply Hardware ( OSH), down 46%, DS Torm ( TRMD), down 20.3%, VisionChina Media ( VISN), down 7.8%, and P.A.M. Transportation ( PTSI), down 7.5%, were all laggards within the services sector with J.B. Hunt Transport Services ( JBHT) being today's services sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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