Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

A Bullish Case For Chipotle Mexican Grill

Published 01/02/2018, 02:55 PM
Updated 05/14/2017, 06:45 AM

Chipotle Mexican Grill's (NYSE:CMG) performance in 2017 was nasty. However that could benefit the stock in early 2018. I say that because sellers dumped the stock in late 2017 to offset capital gains and reduce taxes. Essentially, if an investor was going to sell, she would have done it in 2017 to save money. That limits the amount of sellers in early 2018 (as long as there is no new bad news).

Watch For A Bounce

Chipotle's valuation is now actually semi-attractive, especially on the heels os the S&P 500's P/E expansion. The fast-casual chain did not make a new 52-week low in the last month – even with those tax-loss sellers. Instead, the stock filled a major support-gap fill and is holding it nicely. These factors have me positioning for a bounce in early 2018.

Chipotle Mexican Grill Inc.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.