When a former market leader like Chipotle Mexican Grill gets a 14-point jump in its Relative Strength (RS) Rating, it starts to look like a prime stock watchlist candidate. On Monday, the RS Rating for Chipotle stock popped to 75, up from 61 last week.
The upwardly revised 75 RS Rating puts Chipotle stock in the top 25% of stocks for price performance. The best stocks to buy and watch often have an RS Rating north of 80 as they begin their largest price moves. See if Chipotle Mexican Grill can continue to rebound and hit that benchmark.
Chipotle Stock In Top Echelon
However, the fast casual dining giant's other key ratings are top-notch. It boasts a near-best 97 Earnings Per Share Rating, of a best-possible 99. That puts it in the top 3% of all companies, regardless of industry, for earnings growth in recent quarters and years. MarketSmith chart analysis shows it also has a top-notch 98 Composite Rating.
IBD's Composite Rating combines five separate proprietary ratings of fundamental and technical performance into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Finally, its B+ Accumulation/Distribution Rating, on an A+ to E scale, shows that ETFs, insurance company funds and other big investors are fairly heavy buyers of its stock.
Looking For Winning Stocks? Try This Simple Routine
Chipotle Mexican Grill is working on a double-bottom base with a 1638.43 entry. See if it can break out in heavy trading. On Monday, Chipotle stock rose 2.7% to above 1597.
Profit Growth Erratic But Positive
Earnings per share jumped 35% last quarter, on a year-over-year basis, to an outsize $9.51 per share, on 14% higher revenue, to $2.22 billion. Quarterly earnings growth has been positive but volatile, ranging from 6% to 60% over the past year. Sales growth has been steadier, growing 16% to 22% during that period. Keep an eye out for the company's next round of numbers on or around Feb. 7.
Chipotle stock earns the No. 2 rank among its peers in the Retail-Restaurants industry group. Burger King and Tim Hortons parent Restaurant Brands International and Nathan's Famous, famous for its hot dogs and other fare, are also among the group's highest-rated stocks.
Please follow James DeTar on Twitter @JimDeTar
