Chipotle Stock Contending With Key Trendline

CMG is working its way back above breakeven for 2022

facebook X logo linkedin


Chipotle Mexican Grill, Inc. (NYSE:CMG) hasn't been covered in this space since late July, when the fast casual restaurant giant gapped higher in the wake of a blowout earnings report. A little under two months later, how has CMG fared?

Chipotle stock’s valuation continues to be inflated at a forward price-earnings ratio of 39.22 and a price-sales ratio of 5.89. But on the charts, CMG is contending with its year-to-date breakeven level, with support in place at its ascending 30-day moving average. 

CMG Stock Chart

Nonetheless, the restaurant company's relatively safe fundamentals have served as a justifying factor for CMG's high price. Chipotle has proven to be one of the fastest growing companies in the food industry that has remained profitable for several years as well. CMG has grown its annual revenues and net income 67.5% and 328.3%, respectively, since fiscal 2018, reporting 26.1% top line growth and 83.5% bottom line growth for fiscal 2021.

Furthermore, the restaurant business is estimated to end fiscal 2022 with a 15.8% increase in revenue and a 29.3% increase in earnings. CMG is also expected to generate 13.7% revenue growth and 29.9% earnings growth for fiscal 2023, making Chipotle stock one of the lower risk growth plays available, despite its high valuation.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI