Looking for a Big Move in Chipotle
I'm not sure that I can recall an earnings report from Chipotle Mexican Grill (CMG) when I didn't have some sort of downside exposure because I thought, "This is finally it." What is "it"? It is the day the valuation catches up to the stock. The day when margins are finally pinched enough that CMG starts to feel the pain. It is the report which shows that the big-time growth is done. It is the day when CMG's PEG ratio actually starts to matter. It is still a day we have not seen.
This one has the potential to pop to $390, possibly even $400 on the upside, as it still has a sizable short interest. The stock has marched steadily higher over the last five weeks, so a sell-the-news event targets $350, with $338 being in play for poor guidance on a report which is merely in line....424 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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