|Bid||698.53 x 800|
|Ask||700.89 x 900|
|Day's Range||687.00 - 700.00|
|52 Week Range||326.00 - 721.21|
|Beta (3Y Monthly)||1.31|
|PE Ratio (TTM)||110.94|
|Earnings Date||Apr 24, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||597.67|
A shakeout involves a rush to the exits by investors who suffered a long price decline in a stock and now can break even or perhaps make a small profit.
Chipotle's (NYSE:CMG) has been one of the market's proverbial hot tamales in 2019. But in front of next week's earnings conditions, a cooling off is needed before investors take a bite or nibble of Chipotle stock.Source: Shutterstock It has been a tough week for CMG bulls. Well, kind of … Chipotle stock has shed 3.40% through Wednesday's close compared to the S&P 500's much milder 0.25% dip. But don't cry for Chipotle investors just yet.Shares of CMG are up 50% in 2019 versus 15% for the broader-based average. And that's on top of a sizzling 57% gain in 2018. Further, with CMG stock just 11% removed from its all-time-highs set in 2015, it would be hard to make the case for the bulk of investors regretting their purchases.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut an order of buyer's remorse for Chipotle stock could be coming off the menu that's backed by this week's downgrade from overweight to equal weight by Morgan Stanley.Analyst John Glass was behind the investment firm's downgrade in CMG shares. At the same time, Chipotle's well-below price target of $617 was lifted to a closer-to-the-action $658. Mr. Glass cited CMG's rally as having gone up too far, too fast and shares being close to his bull-case valuation, which could still take a couple of years to play out. * 10 Best Stocks to Buy and Hold Forever I'm not 100% on-board with Morgan Stanley regarding the next two to three years. Nevertheless, right now, the Chipotle stock chart is strongly implying it's time for bulls to finally ring the register, with the intention to place another well-served order shortly. Chipotle Stock Weekly Chart Click to EnlargeI've been a staunch Chipotle stock advocate and shareholder for some time. Most recently and following last quarter's earnings report, my view was still an unequivocally bullish one, promoting CMG's breakout at the time as being 110% "for real."But I'm taking a step away from Chipotle through the earnings event before revisiting the stock and making any fresh buying decisions.The fact is bulls and bears make money, but pigs get slaughtered more often than not. And with the CMG stock chart graciously trumping a targeted zone of $650 - $700 from a corrective W-shaped base breakout and weekly stochastics extremely overbought, the risks in continuing to own CMG stock are elevated in the near term.And with CMG's earnings reaction being a typically volatile affair, you don't have to be one of Chipotle's still top-heavy legion of bears or critics to lock in and say thanks to Chipotle stock's fast fresh price action and happily wait for more opportune prices before placing your order.Disclosure: Investment accounts under Christopher Tyler's management recently exited Chipotle stock (CMG) and/or its derivatives, but still love ordering takeout from Chipotle. The information offered is based upon Christopher Tyler's observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional options-based strategies and related musings, follow Chris on Twitter @Options_CAT and StockTwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Dividend Stocks Perfect for Retirees * 7 Reasons the Stock Market Rally Isn't Over Yet * 10 S&P 500 Stocks to Weather the Earnings Storm Compare Brokers The post Is It Finally Time to Drop Chipotle Stock? appeared first on InvestorPlace.
Chipotle (CMG) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Chipotle (CMG) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank 1 (Strong Buy).
Shares of Chipotle Mexican Grill Inc. took a 2.4% hit in afternoon trade Wednesday, after Morgan Stanley analyst John Glass backed away from his bullish stance on the fast-casual Mexican food chain, as he suggested the stock has run up too far too fast. He cut his rating to equal weight, after being a overweight since August 2018. Although he raised his price target to $658 from $617, that was still 4.5% below current levels. Glass said the stock has more than doubled (up 106%) over the past 12 months, leaving it close to his bull-case valuation, which he believes could still take 2 to 3 years to fully play out. Meanwhile, the S&P 500 has gained 7.2% the past year. Chipotle's stock as pulled back slightly since closing on April 10 at $718.85, the highest level since Oct. 16, 2015, which means it had erased all the losses suffered following E. coli and norovirus outbreaks. Chipotle is scheduled to report first-quarter results on April 24, after the market closes.
Morgan Stanley Downgrades Chipotle to 'Equal Weight'(Continued from Prior Part)Stock performance Today, Chipotle Mexican Grill (CMG) was trading in the red after Morgan Stanley downgraded the stock. As of 12:20 PM EST, Chipotle was trading at
Morgan Stanley Downgrades Chipotle to 'Equal Weight'Morgan Stanley’s downgrade Today, Morgan Stanley downgraded Chipotle Mexican Grill (CMG) from “overweight” to “equal weight” as the surge in the company’s stock price drove its valuation
Shake Shack Stock Falls after Longbow’s Downgrade(Continued from Prior Part)Stock performance Shake Shack (SHAK) was trading lower today after Longbow downgraded it. As of 10:40 AM Eastern Time, the stock was trading at $58, 2.5% lower than
Shares of Chipotle Mexican Grill fell Wednesday as an analyst suggested that there is “less upside” for the hot burrito maker’s stock.
Shake Shack Stock Falls after Longbow’s DowngradeLongbow’s downgrade Today, Longbow Research downgraded Shake Shack (SHAK) to “neutral” from “buy” on concerns about its high valuation. However, the equity research company is positive on
Chipotle (CMG) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
U.S. restaurant sales are projected to reach a record high of $863 billion this year, up 3.6% from last year. Thus, it's time to invest in some sound restaurant stocks to whet your appetite.
Mexican’s out and Italian’s in as Morgan Stanley switches up its menu. The Rating Morgan Stanley analyst John Glass upgraded Domino’s Pizza, Inc. (NYSE: DPZ ) to Overweight and raised his price target ...
Chipotle's (CMG) sales-building initiatives and greater digital innovation are likely to result in revenue growth in the first quarter of 2019.
Will Chipotle Meet Analysts’ Expectations in Q1 2019?(Continued from Prior Part)Analysts’ recommendations Of the total 31 analysts that cover Chipotle Mexican Grill (CMG), 32.3% have given the stock a “buy” rating, while 51.6% are favoring a
Will Chipotle Meet Analysts’ Expectations in Q1 2019?(Continued from Prior Part)Analysts’ expectation Analysts project Chipotle Mexican Grill (CMG) to post adjusted EPS of $2.97 in the first quarter of 2019, which represents a rise of 39.3% from
Will Chipotle Meet Analysts’ Expectations in Q1 2019?(Continued from Prior Part)Analysts’ expectations For the first quarter of 2019, analysts expect Chipotle Mexican Grill (CMG) to post revenue of $1.26 billion, which represents a rise of 9.7%
Will Chipotle Meet Analysts’ Expectations in Q1 2019?Stock performance Chipotle Mexican Grill (CMG) plans to post its first-quarter earnings after the market closes on April 24. As of April 15, the company was trading at $712.27, which represents a
Food stocks have been on fire. Whether that's been fast food stocks, fast casual stocks or whatever variation in between. The economy is going strong, the labor market is tight and that means good things for disposable income.As a result, a number of consumer-oriented food companies are doing quite well right now. Are they about to fizzle out or is the run just getting started?That varies by company, but with only tepid inflation impacting costs and bringing in technology to improve supply chain operations and efficiencies, many companies continue to churn out impressive results. Whether that's on the comparable-store sale side or the bottom line (or both).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks That Can Outperform for Years Let's quit wasting space and get on with the list of fast food stocks that have been on fire! Chipotle Mexican Grill (CMG) Click to EnlargeMan, what is going on with the burrito? Investors should print out the chart for Chipotle Mexican Grill (NYSE:CMG) and label it "lesson for stubborn short sellers."No matter what the bearish thesis is, it doesn't matter. Some shoot against Chipotle on a fundamental and valuation basis. Others note how overbought the stock has become. But none of these facts matter because the market can act irrational for far longer than expected. That's why discipline is so important and the only real factor to remember is price.Look, I get it. Chipotle reported earnings on February 6th, beating on earnings and revenue expectations. However, do earnings of just $1.72 per share and revenue growth of 10.4% justify an overbought condition for two months and a $194 (37%) rally in the stock?No, but that's what momentum can do to a stock.So what now? Obviously the risk/reward here does not favor those initiating a new long position. However, it's clear that -- short of a food-borne illness breakout -- Chipotle is back in investors' good graces.Eventually CMG stock will tire and it's a question of how much this one will pullback, not if it will do so. So far, it's been following its trends pretty well and luckily, it's a name we've liked since January. A pullback into the 50-day will likely attract some buyers and while I'm not sure if we get a $120 decline down to $600, but that could be a solid level of support too. Near $606 is the 38.2% retracement for the 2019 range.Watch for this one on a pullback. Starbucks (SBUX) Click to EnlargeNot quite as strong as the Chipotle rally, but one clearly with caffeine fueling its run is Starbucks (NASDAQ:SBUX). Earlier this week, I highlighted Starbucks stock as it was knocking on $75 resistance. I said that it's hard to get too bearish on Starbucks given its momentum, despite how much it's rallied in the past few months and quarters.Now pushing over $75, shares are definitely overbought. But as we just saw with Chipotle, that condition can persist for quite some time. If Starbucks stock rallies into earnings on April 25th though, it will become a strong candidate for a sell-the-news event.If the U.S. business can continue to buoy Starbucks' business until the Chinese business re-accelerates, SBUX could have plenty of upside over the long term. For now though, estimates predict 6.3% revenue growth this year and 7.8% growth next year. Earnings are forecast to grow 11.6% this year and 12.2% next year. For this, investors are paying almost 28 times this year's earnings.The bears will quickly point out that this valuation is stretched and given the stock's near-60% rally from the summer lows, that claim has some validity. But SBUX is a cash cow with strong margins and continued growth. That cash is being used to fuel an aggressive rollout in growth-hungry China, buy back large chunks of stock and put through huge increases in the dividend. * 7 Dental Stocks to Buy That Will Make You Smile Until the trend fades, SBUX stock is a buy-on-dips name. McDonald's (MCD) Click to EnlargeMcDonald's (NYSE:MCD) is likely the first stock that comes to mind when talking about fast food stocks.The Golden Arches are almost never a bad choice when looking for a long-term investment. Sure it goes through lulls and at times the stock is overvalued, but at the end of the day, its products are in demand. It doesn't matter about the trends in gluten or impossible burgers. Customers still want a Big Mac or McDouble with fries and that demand isn't going to fade.As a result, MCD rings up billions a year in profits. Before its most recent earnings report where McDonald's missed revenue expectations, it had beaten top- and bottom-line expectations nine quarters in a row. That "miss" though was by just $1.6 million on a consensus estimate of more than $5 billion.It shows just how incredibly consistent MCD has been over the last few years. While shares are hovering near all-time highs, the charts still look constructive and I would love a buyable pullback should this $187 to $188 area not buoy the name. The average price target hovers near $200, giving investors decent upside should it get there.Plus, McDonald's is one of the best dividend names you can own. Wendy's (WEN) Click to EnlargeAside from having a savage social media account, Wendy's (NYSE:WEN) stock has been doing well too. $18 had been resistance for almost a year before WEN stock finally pushed through it earlier this year.Wendy's has come up short of revenue estimates in four of the last six quarters, but after a volatile two years, expectations are settling down a bit.Analysts expect 4.9% revenue growth this year and 4.3% growth next year. On the earnings front, estimates call for 5.1% growth this year and a whopping 22.6% growth next year. If Wendy's stock can maintain momentum for the next few quarters, investors may really start to feast on this one in anticipation of that big earnings growth next year. * 3 Solar Stocks to Buy for a New Day in Solar Energy Should it lose $18 though, look for support to come into play near the 200-day moving average and uptrend support (blue line). While not quite as a high as MCD's 2.45% dividend yield, Wendy's 2.2% payout isn't unattractive after a 17.6% bump in February. Domino's Pizza (DPZ) Click to EnlargeFor years, Domino's Pizza (NYSE:DPZ) couldn't be stopped. The pizza maker was one of the first food companies to really embrace technology in a meaningful way. Consumers could place delivery and pickups order in a snap on the app and website. This not only gave a boost to revenue as more customers climbed aboard thanks to the convenience of online ordering, but it also gave a lift to margins. Domino's had less mistakes on its orders and therefore wasted less product.While the stock was a steady beast for many years, that hasn't been the same story over the past year. The stock is roughly flat over the past 12 months, but that may lead to big gains if DPZ can regain its prior momentum.On the weekly chart, you can see that these multi-month bull flags are not uncommon for DPZ. A break out of this pattern and a close over the 50-week moving average could ignite the stock to $300 and above.Analysts expect 9.7% revenue growth this year and next year, and earnings growth of 11.3% this year and 17.2% next year. If DPZ can deliver on these expectations (and perhaps more), maybe that will be enough to get the stock moving higher. Others say the stock's too cheap, so take your pick.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long SBUX. Compare Brokers The post 5 Fast Food Stocks That Are Cooking With Fire appeared first on InvestorPlace.