Trade Tracker: Stephanie Link buys more Chipotle, Uber, Eaton and Rockwell Automation

Investment Thesis on Chipotle (CMG) - Chipotle's same-store sales challenges are viewed as industry-wide, with potential resolution through growth drivers like new products and technology [2] - The company anticipates a strong June ending with improved traffic trends, a decent pricing strategy, and high single-digit percentage unit growth [3] - Despite a 29% year-to-date decrease, there's conviction in Chipotle's long-term growth due to a return to traffic growth, best-in-breed margins, and a reasonable valuation [3][5][16] - Chipotle holds only 3% market share in a $400 billion industry, suggesting significant growth potential [6] - The stock is considered a relative value, especially given its washed-out state and lack of discussion [18] Industrial Sector Insights - Industrial electrification is experiencing rapid growth [8] - Rockwell's core earnings increased by 51 cents, with margins expanding over 200 basis points [9] - Eaton saw 55% order growth in its electrical business, particularly in data centers, indicating strong visibility [9] Uber (UBER) Investment - Uber's stock experienced good earnings but bad price action, leading to increased investment [26] - The company reported all-time highs in frequencies, profitability, and customer count, with a $20 billion buyback program [26][27] - Despite solid results, the stock was down due to unmet expectations regarding the expansion of the Waymo partnership [28] Market Sentiment and Valuation - The consumer sentiment in April and May was challenging, impacting the restaurant industry [13] - Chipotle's valuation is around 30 times forward earnings, compared to a historical average of 40 times [3][21] - The current market favors AI stocks, making it harder for companies with decent but not exceptional valuations to attract investor dollars [19]