Chipotle Mexican Grill Inc. (CMG): Today's Featured Services Winner

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 Services sector higher today making it today's featured services winner. The sector as a whole closed the day down 0.2%. By the end of trading, Chipotle Mexican Grill rose $9.80 (2.3%) to $428.80 on average volume. Throughout the day, 468,290 shares of Chipotle Mexican Grill exchanged hands as compared to its average daily volume of 349,600 shares. The stock ranged in a price between $422.00-$429.78 after having opened the day at $422.64 as compared to the previous trading day's close of $419.00. Other companies within the Services sector that increased today were: Liberty Media Corporation Class A ( LMCA), up 34.0%, China Metro-Rural Holdings ( CNR), up 32.4%, DLH Holdings ( DLHC), up 28.0% and Watsco ( WSO.B), up 23.3%.

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 $12.9 billion and is part of the leisure industry. Shares are up 40.8% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Chipotle Mexican Grill a buy, 1 analyst rates it a sell, and 13 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 negative front, FreeSeas ( FREE), down 13.8%, Newlead Holdings ( NEWL), down 10.6%, Globus Maritime ( GLBS), down 10.4% and Myriad Genetics ( MYGN), down 9.3% , were all laggards within the services sector with Sirius XM Radio ( SIRI) 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).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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