CHIPOTLE MEXICAN GRILL INC (NYSE:CMG) – A Strong Growth Stock Showing Technical Breakout Potential

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 recent price consolidation that could signal a breakout opportunity. Below, we examine why CMG stands out in both growth and technical terms.

Fundamental Strengths

• Strong Growth Metrics: CMG has demonstrated consistent revenue and earnings growth, with revenue increasing by 12.57% over the past year and EPS growing at an average annual rate of 31.99% over recent years. Future EPS growth is projected at 18.61%, reinforcing its growth trajectory.
• High Profitability: The company boasts an impressive Return on Equity (44.73%) and Return on Invested Capital (18.96%), outperforming most peers in the restaurants and leisure industry.
• Financial Health: With no outstanding debt and a strong Altman-Z score of 9.54, CMG maintains a robust balance sheet.
• Valuation Considerations: While CMG trades at a premium (P/E of 43.34), its high growth and profitability may justify the valuation for investors seeking quality growth stocks.

Technical Setup

• Recent Consolidation: CMG has been trading in a tight range ($48.72 - $52.69), with a recent Pocket Pivot signal indicating potential accumulation.
• Support Levels: Key support lies near $48.65, providing a potential entry zone if the stock holds above this level.
• Resistance Breakout: A move above $52.33 could signal further upside, especially if accompanied by strong volume.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks with similar characteristics and is updated daily.
For a deeper dive, review the full fundamental analysis of CMG and the technical analysis report.

Disclaimer

This is not investment advice. The observations here are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.