Tuesday's Market Minute: How Far Can Chipotle Go?

Chipotle Mexican Grill, Inc. CMG reports earnings after the market closes today. The stock has been on a tear all year, up over 90% year-to-date. Multiple traders have said they expect the stock to reach $1,000, including Jim Cramer (the stock is trading at $850/share). Maxim Group upgraded the stock's price target last week, citing the price of ingredients coming down.

Other factors seen as bullish for Chipotle include its online ordering capabilities and new menu items. Taking these factors all together, it could perhaps seem like Chipotle's run can't be stopped. But, how far can it run before it's overvalued? What effect could a renewed trade war with Mexico have, given that the USMCA still hasn't been signed? What if the price of ingredients goes up again? Or, as has happened many times in the past to this company, what happens if another wave of foodborne illness strikes? And how far will the stock fall if it misses earnings?

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