Keep an eye on oversold shares of Chipotle (CMG).
Post-split, the stock pulled back to $48 and is just starting to pivot higher. It’s also just starting to pivot from over-extensions on RSI, MACD and Williams’ %R. From its last traded price of $55.55, we’d like to see it initially really back to $62.
“We don’t think there’s any great reason for its pullback except for general concerns in the economy and the restaurant space overall,” Dan Ahrens, portfolio manager of the Advisor Shares Restaurant exchange-traded fund, told Barron’s. “This could be a good entry point for long-term investors.”
Recent earnings haven’t been too shabby.
In its second quarter, the company’s EPS of 34 cents beat by two cents. Revenue of $2.97 billion, up 18.3% year over year, beat by $30 million. Comparable restaurant sales were up just over 11%. And its operating margins jumped to 19.7% from 17.2%.
Sincerely,
Ian Cooper
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