Custom burrito maker Chipotle Mexican Grill may be getting ready for another surge as profits and sales ramp up. On Wednesday, Chipotle Mexican Grill‘s (CMG) stock Relative Strength (RS) Rating climbed to 73, up from 68 a day earlier.
The 73 Relative Strength Rating, out of 99, shows that Chipotle Mexican Grill’s share price performance tops that of 73% of all stocks. It’s a sign of rising strength, but below the threshold CAN SLIM investors like to see. Top stocks typically have an RS Rating of over 80 as they begin their biggest runs. See if Chipotle can continue to show renewed price strength and hit that benchmark.
Chipotle Mexican Grill Ratings
Chipotle also carries an 80 EPS Rating and a 90 Composite Rating.
The Composite Rating contains a mix of five other IBD stock ratings. The EPS, Relative Strength, Accumulation/Distribution, Sales+Margins+ROE and Industry Group Rating all come together. The best stocks have a Composite Rating of 90 or better.
Additionally, Chipotle carries a B Accumulation/Distribution Rating, on an A+ to E scale. The B rating means that institutional investors are moderately heavily buying shares.
In terms of fundamentals, Chipotle Mexican Grill last quarter reported a 22% increase in EPS to $3.48 on a 12% jump in revenue to $1.61 billion. It was the restaurant chain’s best showing in at least a year.
In the Feb. 2 earnings news release, CEO Brian Niccol said, “Expanding access and convenience through our digital ecosystem has kept the Chipotle brand relevant.” Niccol added that, “With world class talent, an inclusive culture, strong business fundamentals and deep financial strength, we are well prepared to emerge even stronger post-Covid.”
Chipotle plans to announce first quarter earnings after the market close on April 21. Shares fell more than 2% Wednesday afternoon, in sync with the market pullback, to 1447.58.
Among Top 5 Restaurants
Chipotle earns the No. 2 rank among its peers in the Retail-Restaurants industry group. No. 1 Jack In The Box (JACK) and Biglari Holdings (BHA), operator of Steak N Shake and Western Sizzlin steak houses, are also among the group’s highest-rated stocks.
Chipotle Mexican Grill is now considered extended and out of buy range after clearing a 1,384.56 buy point in a second-stage consolidation. See if the stock forms a new chart pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength.
IBD’s proprietary rating identifies share price movement with a 1 (worst) to 99 (best) score. The score shows how a stock’s price movement over the last 52 weeks compares to all the other stocks in our database.
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