Diamonds and Dogs
1/10/17
Bad news is good news. Chipotle Mexican Grill (CMG) is up 4% even though the company lowered fourth quarter earnings. Even though earnings will be below estimates, sales did improvement markedly in December as comps rose 14.7% versed estimates of 12%. Maybe 2017 will be kinder to Chipotle.
Moody's (MCO) is looking a little moody. The credit rating agency is down 2% to a sixth month low on a downgrade from UBS. While the firm continues to like the moat of the rating agency business model, they believe 2017 estimates will likely not be met initial guidance given the current outlook for debt issuance. The analyst also believes that potential headwinds from tax reform and higher interest rates are not fully captured in the stock's current valuation.
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