Why Chipotle Mexican Grill (CMG) is a Top Momentum Stock for the Long-Term

Zacks Equity Research
·2-min read

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Is This 1 Momentum Stock a Screaming Buy Right Now?

Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

Chipotle Mexican Grill (CMG)

A Delaware corporation, Chipotle Mexican Grill, together with its subsidiaries, operates quick-casual and fresh Mexican food restaurant chains. The company was founded in 1993 by Steve Ells, who started with a single restaurant in Denver, CO. The company offers a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. Chipotle restaurants feature free-range, hormone-free pork, natural chicken and other meat products cooked using traditional methods and served in a unique atmosphere.

CMG boasts a Momentum Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Shares of Chipotle Mexican Grill has seen some interesting price action recently; the stock is up 0.7% over the past one week and up 0.1% over the past four weeks. And in the last one-year period, CMG has gained 53.8%. As for the stock's trading volume, 245,828.05 shares on average were traded over the last 20 days.

Momentum investors also pay close attention to a company's earnings. For CMG, 14 analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $1.92 to $55.30 per share for 2024. CMG boasts an average earnings surprise of 8.3%.

With strong earnings growth, a good Zacks Rank, and top-tier Momentum and VGM Style Scores, investors should think about adding CMG to their portfolios.

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Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report

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