A Bullish Case For Chipotle Mexican Grill
InTheMoneyStocks.com | Jan 02, 2018 02:55PM ET
Chipotle Mexican Grill's (NYSE:CMG) performance in 2017 was nasty. However that could benefit the stock in early 2018. I say that because sellers dumped the stock in late 2017 to offset capital gains and reduce taxes. Essentially, if an investor was going to sell, she would have done it in 2017 to save money. That limits the amount of sellers in early 2018 (as long as there is no new bad news).h3 Watch For A Bounce/h3
Chipotle's valuation is now actually semi-attractive, especially on the heels os the S&P 500's P/E expansion. The fast-casual chain did not make a new 52-week low in the last month – even with those tax-loss sellers. Instead, the stock filled a major support-gap fill and is holding it nicely. These factors have me positioning for a bounce in early 2018.
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