CHIPOTLE MEXICAN GRILL INC (NYSE:CMG) – A Strong Growth Stock with a Technical Setup

CHIPOTLE MEXICAN GRILL INC (NYSE:CMG) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamentals with a potential breakout pattern, making it worth a closer look.

Strong Growth Fundamentals

• Growth Rating (7/10): CMG has demonstrated consistent revenue and earnings growth, with revenue increasing by 12.57% over the past year and earnings per share (EPS) growing at an average of 31.99% annually. Future projections suggest continued growth, with EPS expected to rise by 18.61% yearly.
• Profitability (8/10): The company maintains strong margins, with a 17.25% operating margin and a return on invested capital (ROIC) of 18.96%, outperforming most peers in the restaurants industry.
• Financial Health (8/10): CMG has no debt and a solid Altman-Z score of 9.67, indicating low bankruptcy risk.

Technical Setup Indicates Potential Breakout

• Setup Rating (7/10): Despite a weak overall technical score (1/10), CMG is consolidating near a key resistance zone between $51.20 and $52.03. A breakout above this level could signal further upside.
• Recent Price Action: The stock is trading near the upper end of its recent range ($45.21 - $52.51), suggesting momentum may be building.

While CMG’s valuation appears expensive with a P/E of 44.14, its strong growth and profitability justify a premium. Investors should watch for a confirmed breakout above resistance.

For more stocks with strong growth and technical setups, check our Strong Growth Stocks with Good Technical Setup Ratings screener.

For a deeper dive into CMG’s fundamentals, review the full fundamental report.

Disclaimer

This is not investment advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.