Trading Outlook For Chipotle (CMG)

If the stock price of Chipotle Mexican Grill

continues to follow its current trajectory, the shares may trade at $600 within 5 years. Currently, the stock is valued at around $204. Since its 2006 IPO, CMG has risen almost 400%. Year-to-date, the stock has gained 132%. In the last 3 months, it has added more than 40% - you get the picture. Chipotle looks to be a very special company with tremendous brand loyalty and a pedigree for success, as the company was once owned by McDonald's

. In the near-term, however, valuation may be a concern. CMG trades at a trailing P/E of just below 40, a forward multiple of 33.42, and a PEG ratio of 1.73. The median Wall Street price target on the stock of $169.50 has already been exceeded, and the high target of $210.00 is within striking distance. Expect target prices to ratchet up, and/or downgrades on valuation concerns to commence. The stock is trading well above its 50-day moving average of $173.99 and its 200-day at $149.30. On a short-term basis, CMG looks overbought, and a pull back could be in the cards. On a longer-term horizon, however, Chipotle appears to be a winner. Investors who are bullish on the name, should consider using any weakness in the stock to establish a position.