Chipotle Mexican Grill Inc (CMG · NYSE)

Chipotle shares have fallen sharply of late — down 7.7% over five days and 5.3% over the past month to $33.43, leaving the stock 21.1% below its 52-week high with RSI at 23 and volume running 1.8x the 20-day average. The selling comes despite a clean earnings record: the company beat estimates in all four of its last quarters, including Q2 (June 30) EPS of $0.33 versus $0.32 expected, on revenue of $3.35B that grew 9.3% year over year. Margins remain solid — 16.1% operating, 11.4% net — and the quarter generated $463.4M in free cash flow, though earnings declined 1.3% year over year and the current ratio sits at 0.72. Valuation is undemanding relative to history at a 30.95 P/E and 20.49 EV/EBITDA, with the analyst target at $43.86.