Restaurant stocks don't get much tastier than Chipotle Mexican Grill. Earnings jumped 49% last quarter, its third quarter in a row of higher profit growth. On Monday, the Relative Strength (RS) Rating for top-ranked Chipotle stock shot up to 83, according to MarketSmith.
Chipotle Stock Key Ratings Delicious
The 83 Relative Strength Rating means that Chipotle stock has topped 83% of all stocks for price performance. Chipotle also has an 84 Earnings Per Share Rating, a near-best 98 Composite Rating out of 99, and an excellent A- Accumulation/Distribution Rating, on an A+ to E scale.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. Stocks that go on to make the biggest gains tend to have an RS Rating of at least 80 in the early stages of their moves. Chipotle is in that fast-growth group.
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Chipotle operates 3,129 casual dining restaurants in the U.S. and 53 in various other countries.
Profits Keep Rising, Sales Growth Mixed
Last quarter, Newport Beach, Calif.-based Chipotle Mexican Grill recorded a 49% hike in earnings to $8.29 per share. The prior three periods it reported 6% EPS growth, 25% and then 35%. Revenue last quarter rose 11% to $2.18 billion. That came on the heels of 16%, 17% then 14% sales growth.
Chipotle Mexican Grill is building a flat base with a 1,724.81 buy point. See if it can clear the breakout price in volume at least 40% above average. Monday Chipotle stock rose 1% to above 1,566.
Chipotle stock holds the No. 1 rank among its peers in the Retail-Restaurants industry group. Full-service Steak and ribs restaurant chain Texas Roadhouse is No. 2 in the group and popular chicken wings chain Wingstop is No. 3
The exclusive Relative Strength Rating from Investor's Business Daily identifies market leadership with a 1 (worst) to 99 (best) score. The grade shows how a stock's price behavior over the last 52 weeks compares to all the other stocks in our database.
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