For Chipotle, last week's earnings report didn't show a great quarter, but it was decent, said TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, on CNBC's "Stop Trading" segment.
Barron's suggested the stock could fall by another 10%, but Cramer argued that a decline of that much seems unlikely at this point. The earnings report wasn't all positive, but it had a lot of positives, he said, and in five months things could be looking much better.
Cramer explained that it usually takes 18 months for a stock to recover from foodborne-illness outbreaks. Given that Chipotle's last one was in December 2015, by early summer the burrito chain should be doing much better.
Shorting this stock is a "terrible" move, Cramer added. He concluded, "I would caution people that it's difficult to bet against a company that has an ethos that hasn't completely disappeared."