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2011 Top S&P Stocks: No. 9 Chipotle

Chipotle served up a nearly 55 percent increase in its share price year to date, making it the No. 9 in the “Fast Money” countdown of the top S&P stocks of 2011.

Chipotle stock traded midday Tuesday at $329 per share. Its 52-week high was $347.94 with a low of $212.58 and EPS of $6.42.

“There’s no question that the risk with a growth stock is that people are expecting growth,” said Sara Senatore, restaurant analyst at Bernstein. “So when you don’t get that growth, people have to revise their models, have to revise how they think about their stock.”

Senatore, who issued an “outperform” rating on the stock, said she liked the company’s outlook because of healthy same-store sales and the possibility of increasing margins on falling food prices.

Trader Patty Edwards said her concern was valuation — “at 38 times next year’s earnings to me seems a little hard to swallow.”

“Fast Money” pro Mike Murphy said he liked the restaurant but wasn’t a buyer.

“I don’t know that I like the stock at this levels,” he said.

“I like it here — margin expansions, the growth is there, 100 percent of its revenue domestically based here in the U.S. You can tack on Darden Restaurants,” said trader Joe Terranova. “I like the story on both.”

Darden shares traded at $43.79 midday, down 5.71 percent year to date.

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Trader disclosure: On Dec. 20, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Terranova is long VRTS; Terranova is long IBM; Terranova is long LQD; Terranova is long MUB; Terranova is long EMC; Terranova is long CSCO; Terranova is long AXP; Terranova is long SBUX; Terranova is long TRLG; Murphy owns AKS; Murphy owns BAC;

For Patty Edwards
Trutina Financial is long APPLE (AAPL)

Trutina Financial is long SPDR GOLD TRUST (GLD)

Trutina Financial is long MICROSOFT (MSFT)

Trutina Financial is long INTEL (INTC)

Trutina Financial is long VERIZON (VZ)

Trutina Financial is long ORACLE (ORCL)

Trutina Financial is long ZYNGA (ZNGA)

Trutina Financial is long Target TGT

Trutina Financial is long COSTCO (COST)

For Brian Kelly
Shelter Harbor Capital is long KRE

Shelter Harbor Capital is long IWM

Shelter Harbor Capital is long US DOLLAR

Shelter Harbor Capital is long ITUB

Shelter Harbor Capital is long BBD

Shelter Harbor Capital is short AIV

Shelter Harbor Capital is short AVB

Shelter Harbor Capital is short UBS

Shelter Harbor Capital is short CS

Shelter Harbor Capital is short C

For Jeff Harte
Bank of America Corporation (BAC) - Sandler O'Neill expects to receive or intends to seek compensation from Bank of America Corporation for investment banking services in the next three months. Sandler O'Neill has received compensation from Bank of America Corporation for providing products or services other than investment banking services in the 12-month period ending as of the second most recent month preceding the date of this report. Bank of America Corporation is a client of and receives non-investment banking securities-related services from Sandler O'Neill (based on information as of the end of the second most recent month immediately preceding the date of this report). The reviewer of this report owns shares of stock of Bank of America Corporation.

Bank of New York Mellon Corp. (BK) - Sandler O'Neill expects to receive or intends to seek compensation from Bank of New York Mellon Corp. for investment banking services in the next three months. Bank of New York Mellon Corp. is a client of and receives non-investment banking securities-related services from Sandler O'Neill (based on information as of the end of the month immediately preceding the date of this report).

Goldman Sachs Group, Inc. (GS) - Sandler O'Neill has received compensation from Goldman Sachs Group, Inc. for providing products or services other than investment banking services in the 12-month period ending as of the second most recent month preceding the date of this report. Goldman Sachs Group, Inc. is a client of and receives non-investment banking securities-related services from Sandler O'Neill (based on information as of the end of the month immediately preceding the date of this report).

Citigroup, Inc. (C)- Sandler O'Neill has received compensation from Citigroup, Inc. for investment banking services in the past 12 months. Sandler O'Neill expects to receive or intends to seek compensation from Citigroup, Inc. for investment banking services in the next three months. Sandler O'Neill has received compensation from Citigroup, Inc. for providing products or services other than investment banking services in the 12-month period ending as of the second most recent month preceding the date of this report. Citigroup, Inc. is a client of and receives non-investment banking securities-related services from Sandler O'Neill (based on information as of the end of the month immediately preceding the date of this report). Citigroup, Inc. was a client of Sandler O'Neill in the 12-month period ending as of the second most recent month immediately preceding the date of this report. During that period, Sandler O'Neill provided investment banking services to Citigroup, Inc.

Morgan Stanley (MS)- Sandler O'Neill has received compensation from Morgan Stanley for providing products or services other than investment banking services in the 12-month period ending as of the second most recent month preceding the date of this report. Morgan Stanley is a client of and receives non-investment banking securities-related services from Sandler O'Neill (based on information as of the end of the month immediately preceding the date of this report).

Jefferies Group, Inc. (JEF)- Sandler O'Neill has received compensation from Jefferies Group, Inc. for investment banking services in the past 12 months. Sandler O'Neill expects to receive or intends to seek compensation from Jefferies Group, Inc. for investment banking services in the next three months. Jefferies Group, Inc. was a client of Sandler O'Neill in the 12-month period ending as of the second most recent month immediately preceding the date of this report. During that period, Sandler O'Neill provided investment banking services to Jefferies Group, Inc.

Northern Trust Corporation (NTRS)- Sandler O'Neill expects to receive or intends to seek compensation from Northern Trust Corporation for investment banking services in the next three months. As of the date of this report, Sandler O'Neill currently acts as a market maker in the securities of Northern Trust Corporation. Sandler O'Neill has received compensation from Northern Trust Corporation for providing products or services other than investment banking services in the 12-month period ending as of the second most recent month preceding the date of this report. Northern Trust Corporation is a client of and receives non-investment banking securities-related services from Sandler O'Neill (based on information as of the end of the month immediately preceding the date of this report).

JP Morgan Chase & Co. (JPM)- Sandler O'Neill expects to receive or intends to seek compensation from JP Morgan Chase & Co. for investment banking services in the next three months. Sandler O'Neill has received compensation from JP Morgan Chase & Co. for providing products or services other than investment banking services in the 12-month period ending as of the second most recent month preceding the date of this report. JP Morgan Chase & Co. is a client of and receives non-investment banking securities-related services from Sandler O'Neill (based on information as of the end of the month immediately preceding the date of this report).

For Sara Senatore
CHIPTOTLE (CMG): Bernstein analysts are compensated based on aggregate contributions to the research franchise as measured by account penetration, productivity and proactivity of investment ideas. No analysts are compensated based on performance in, or contributions to, generating investment banking revenues.

For Rick Sherlund
Oracle – I, Rick Sherlund, hereby certify (1) that the views expressed in this Research report accurately reflect my personal views about any or all of the subject securities or issuers referred to in this Research report, (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in this Research report and (3) no part of my compensation is tied to any specific investment banking transactions performed by Nomura Securities International, Inc., Nomura International plc or any other Nomura Group company.

For Michael Pachter
Zynga – Wedbush Securities makes a market in the securities of the subject company.

Activision Blizzard – Wedbush Securities makes a market in the securities of the subject company.

Best Buy – Wedbush Securities makes a market in the securities of the subject company.

Electronic Arts – Wedbush Securities makes a market in the securities of the subject company.

For Ben Abramovitz
AT&T - The analyst responsible for preparing the research upon which these ratings are based may receive compensation based upon various factors including the firm's overall profitability, a portion of which is derived from investment banking revenues.

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