Chipotle Is On Fire (CMG)

The recent correction has undoubtedly taken a bite out of many investors profits, and there have not been a whole lot of places to hide out in the stock market. Year to date, the S&P 500 has fallen 3%, wiping out big gains from earlier in 2010. One stock that has seriously bucked the wider market trend, however, is Chipotle Mexican Grill (NYSE: CMG). Chipotle shares have climbed nearly 65% in 2010, and the strong uptrend is still intact. Over the last month, when the S&P has fallen 6.23%, CMG has jumped 5.18%. Chipotle is now trading at a P/E of 33.31, a forward P/E of 24.74 and a PEG ratio of 1.46. Wall Street analysts are estimating that the company will earn $4.95 per share in 2010 and $5.86 in 2011. Revenues are expected to be $1.76 billion and $2.03 billion, respectively. The median Wall Street price target on the stock is $153.50, and the high target is $175.00. Out of the 21 brokers that cover Chipotle, 13 of them have a Strong Buy or Buy rating on the stock. This is a very young company, which was spun off from McDonald's (NYSE: MCD) in 2006. Since the IPO, CMG has provided shareholders with returns of nearly 245%. It seems that the unprecedented success of McDonald's (MCD) has rubbed off on Chipotle, as the company is having similar results, albeit on a much smaller level. If you are looking for long term growth, look to Chipotle.