Benzinga - by Surbhi Jain, .
Chipotle Mexican Grill, Inc. (NYSE:CMG) stock just recorded a new all-time high of $3,199.99 during trading on April 26.
Stellar Q1 Earnings Wins Praise From Jim Cramer The stock has positive momentum since the end of October 2023. Over the past six months, Chipotle stock was up over 75%. It kept momentum into 2024 with the stock up over 39% YTD.
The company reported first-quarter earnings on Wednesday, after market hours. The surprise of 14.47% on EPS and 1.20% on revenue estimates sent the stock soaring. Chipotle’s earnings report added fuel to send the stock up over 8% since Wednesday.
Jim Cramer praised Chipotle recently on CNBC’s “Mad Money,” highlighting its successful “self-help” strategy amid economic challenges. He emphasized Chipotle’s focus on improving throughput, which has nothing to do with broader economic conditions.
Several Analysts Raise Their Price Targets On Chipotle Stock Post first-quarter earnings, Chipotle stock was also boosted by several analysts raising their price targets on the stock.
Related: Chipotle Mexican Grill Is In A ‘League Of Their Own’: 7 Analysts Revise Forecasts After Q1 Results
The consensus analyst rating stands at a Buy with a price target of $3,037.03.
Charts Indicate Further Bullish Momentum Let’s look at what the charts hint at and what could lie ahead for the stock.
Driven by business strength and a positive earnings report, Chipotle’s stock is making new all-time highs.
With a great run-up so far and over the past six months, the stock continues to exhibit a strong bullish trend. Charts indicate the future trajectory for Chipotle’s stock is supported by its share price trading above its 5-, 20-, and 50-day exponential moving averages.
This indicates buying pressure and suggests potential for further bullish movement.
Chart: Benzinga Pro
Additionally, the stock’s 8-day simple moving average is at $2,962.97, signaling bullish momentum. The 20-day SMA of $2,939.56 and the 50-day SMA of 2,816.74 also support a bullish stance. Furthermore, Chipotle’s stock price of $3,185.76 is above its 200-day simple moving average of $2,264.48, reinforcing the Buy stance.
Chart: Benzinga Pro
The Moving Average Convergence Divergence (MACD) indicator is at 61.84, recently crossed over the signal line (currently at 49.26) — reinforcing the bullish stance set up by moving averages. However, the Relative Strength Index (RSI) of 76.93 suggests the stock is overbought, and spells caution.
The stock price has been trading in (and has just broken above) the upper of the Bollinger Bands and supports a bullish stance.
The company’s strong business performance and positive first-quarter earnings report have fueled this upward trajectory. Analysts and market experts are bullish on the stock, with several raising their price targets.
From a technical standpoint, the charts indicate a continuation of this bullish trend, with the stock trading above key moving averages and showing strong buying pressure. While the RSI suggests the stock is overbought, indicating a potential need for caution, the overall outlook for Chipotle remains optimistic.
Investors looking for a growth opportunity in the restaurant sector may find Chipotle a compelling choice, given its recent performance and future potential.
Read Next: Chipotle Requests Employees To Not Eat Chicken So They Can Sell More, Rescinds Soon
Photo: Shutterstock
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