The stock market closed sharply lower on Thursday driven by economic and political uncertainty. This further deepened the market’s losses since President Trump’s tariffs threat.
Overall, S&P was down 1.4% to 5,522, while NASDAQ declined 2.0% to 17,303.
Tweet of the Day
A lower USD is good for US companies that sell Internally as a strong dollar hurts EPS, this making year over year EPS growth lower.
Stock growth is often similar to EPS growth long term. So a co. growing EPS at 12% a year might have a stock that grows 12% a year in say a 10 yr… https://t.co/rfksxOgzu7
— David Sharek (@GrowthStockGuy) March 6, 2025
Chart of the Day
Here is the one-year chart of Chiportle Mexican Grill (CMG) as of March 11, 2025, when the stock was at $50.
Chipotle’s stock has been simmering down as both the stock and company profits were cranking higher.
Three quarters ago, with the shares at $64, the stock had a P/E of 57. That was WAY too high of a P/E ratio, and it was obvious the stock was overdue for a correction. Our Fair Value on CMG is a P/E of 35. Around that time, the stock peaked and has since been trending lower.
This quarter, the stock is $50 and the P/E is 39. Our Fair Value is a P/E of 35, which equates to $46 a share. CMG has come down a lot, but for us it is still too high to buy back.
CMG was part of our Growth Portfolio. David Sharek, Founder of School of Hard Stocks, sold the stock last quarter because it was overvalued. He is now looking to buy it back on a dip.
