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 pre-market laggard 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 $433.3 million.
  • CMG traded 37,436 shares today in the pre-market hours as of 8:36 AM.
  • CMG is down 5.4% today from yesterday's close.

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More details on CMG:

Chipotle Mexican Grill, Inc., together with its subsidiaries, develops and operates fast-casual and fresh Mexican food restaurants. As of February 3, 2015, it operated approximately 1,780 restaurants, including 17 Chipotle restaurants and 9 ShopHouse Southeast Asian Kitchen restaurants. CMG has a PE ratio of 48.4. Currently there are 13 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 435,900 shares per day over the past 30 days. Chipotle Mexican Grill has a market cap of $21.2 billion and is part of the services sector and leisure industry. The stock has a beta of 0.57 and a short float of 3.2% with 1.30 days to cover. Shares are up 0.3% year-to-date as of the close of trading on Monday.

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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, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 8.2%. Since the same quarter one year prior, revenues rose by 26.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CHIPOTLE MEXICAN GRILL INC reported significant earnings per share improvement 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 ($17.31 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 52.3% when compared to the same quarter one year prior, rising from $79.62 million to $121.23 million.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • 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 on the basis of return on equity, CHIPOTLE MEXICAN GRILL INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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