The stock market closed mixed on Friday, but recorded strong gains for the month of May. Investors left their fears behind after President Donald Trump announced that China violated its preliminary trade agreement.
Overall, S&P 500 was flat at 5,912, while NASDAQ fell 0.3% to 19,114.
Tweet of the Day
— David Sharek (@GrowthStockGuy) May 29, 2025
Chart of the Day
Here is the one-year chart of Chipotle Mexican Grill (CMG) as of April 28, 2025, when the stock was at $51.
Chipotle stock has been lackluster during the past year, declining from around $65 to ~$50. Yet still, the shares remain expensive.
CMG has an Estimated Long Term Growth Rate of 17% a year. Since this is a quality company, we think it is worth a P/E of 35, or $43 a share.
However, the stock price is $51 this quarter, so the stock is overvalued in our opinion.
Last quarter, Chipotle delivered 7% profit growth on 6% revenue growth, but year-over-year comparisons were tough as the company grew profits 29% in the year-ago period.
Analysts have since trimmed full-year earnings per share forecasts to $1.22 for 2025 (from $1.30), $1.44 for 2026 (from $1.54), and $1.71 for 2027 (from $1.84) due to sustained margin pressure from higher food and labor costs and softer traffic. Management said visits fell by 2% due to bad weather and discretionary spending since February (through April), though the Honey Chicken promo gave a nice bump late in the quarter.
CMG is on the radar for our Growth Portfolio. Another dip in price is what David Sharek, Founder of School of Hard Stocks, is looking for to climb aboard once again.
