CMG has added nearly 40% in 2024
As discussed in our 25 Worst Stocks to Own in January blog, the incoming administration is expected to roll out significant policy shifts. With the selection of Robert F. Kennedy Jr. to lead the Department of Health and Human Services pressuring healthcare, a quote from President-elect Donald Trump's campaign speech in New York in November suggested food was also on the political table. However, if you're looking for a historically "safe" food stock option to buy in January, Chipotle Mexican Grill, Inc. (NYSE:CMG) may be your best bet.
According to data from Schaeffer's Senior Quantitative Analyst Rocky White, CMG averaged an impressive January gain of 6.4% over the past 10 years, finishing higher eight times out of 10. From its current perch of $60.37, a move of this magnitude would put the Mexican food chain just below $65 -- on its way back toward its early December highs.
Shares of CMG are pacing toward a third consecutive daily drop, a rare occurrence for the food giant that sports a nearly 40% year-to-date gain. Reemerging as support is the 80-day moving average, which has captured numerous pullbacks since early September.
For those looking to move in on the security, options look like an affordable way to go. This is per its Schaeffer's Volatility Index (SVI) of 24%, which ranks in the 18th percentile of its annual range.
