The Reason Fast-food Stocks Should Be Amongst Your Top Picks

Chipotle Mexican Grill, Inc. (NYSE/CMG) is one of my favorite places to grab a quick bite to eat. Yet, despite some stellar growth, the stock broke below $300.00 on Wednesday and has been steadily losing ground since trading at a 52-week high of $442.40 in April. Mounting concerns regarding future growth and multiple downgrades from analysts have hurt the stock. Hedge fund manager David Einhorn hammered another nail into the coffin when he said that Chipotle’s valuation “doesn’t make sense.”

With Chipotle Mexican trading at 28X 2013 earnings and with a price/earnings-to-growth (PEG) ratio of 1.7, my stock analysis is that the current valuation looks somewhat top-heavy. Read Full Article at: http://www.investmentcontrarians.com/stock-market/the-reason-fast-food-stocks-should-be-amongst-your-top-picks/760/

Economic Forecast 2013