Chipotle Mexican Grill Inc. (CMG): Today's Featured Leisure Laggard

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 or Stephanie Link.

Chipotle Mexican Grill ( CMG) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day up 0.4%. By the end of trading, Chipotle Mexican Grill fell $4.26 (-1.1%) to $402.79 on light volume. Throughout the day, 235,024 shares of Chipotle Mexican Grill exchanged hands as compared to its average daily volume of 379,000 shares. The stock ranged in price between $401.88-$406.17 after having opened the day at $403.95 as compared to the previous trading day's close of $407.05. Other companies within the Leisure industry that declined today were: Biglari Holdings ( BH), down 7.4%, Panera Bread Company ( PNRA), down 2.0%, Red Lion Hotels Corporation ( RLH), down 1.8% and Bob Evans Farms ( BOBE), down 1.6%.

Chipotle Mexican Grill, Inc. develops and operates fast casual and fresh Mexican food restaurants. Its restaurants primarily offer burritos, tacos, burrito bowls, and salads. As of June 3, 2013, the company operated 1,450 restaurants. Chipotle Mexican Grill, Inc. Chipotle Mexican Grill has a market cap of $12.4 billion and is part of the services sector. Shares are up 35.5% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Chipotle Mexican Grill a buy, no analysts rate 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 solid stock price performance. 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.

On the positive front, Chanticleer Holdings ( HOTR), up 6.5%, Home Inns & Hotels Management ( HMIN), up 6.0%, Expedia ( EXPE), up 5.1% and Century Casinos ( CNTY), up 4.9% , were all gainers within the leisure industry with Ctrip.com International ( CTRP) being today's featured leisure industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).

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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