Best S&P 500 Stock to Buy Right Now After the Shares' Big Move

The S&P 500 index has dropped 3.8% this year through April 2. Investors have had plenty to worry about recently, with the ongoing war in Iran. That's caused oil prices to jump, with the price of Brent crude oil, an international benchmark, increasing about 50% since hostilities broke out at the end of February.

The most visible and immediate impact has been on gas prices. With consumers forced to shell out more money at the pump, that'll undoubtedly hurt their spending on other items.

But the situation presents an opportunity for long-term investors to buy consumer discretionary stocks at better valuations. This S&P 500 company deserves your serious consideration after its stock price dropped this year.

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Proven business

Chipotle Mexican Grill (NYSE: CMG) has been in business for more than three decades. It has not merely survived, but thrived by attracting crowds.

That's because Chipotle stands out among restaurant companies. A fast-casual chain, it offers convenience and high-quality food at reasonable prices. The company's offerings include burritos, quesadillas, tacos, and salads. It distinguishes itself through its offerings, which don't have artificial flavors, artificial colors, or preservatives.

Reasonable prices and high-quality food have proven a powerful combination in drawing customers over the years. It's no wonder that Chipotle has consistently produced same-restaurant sales (comps) growth. But comps hit a snag last year.

Long-term prospects remain intact

Chipotle's 2025 comps dropped 1.7%. Traffic subtracted 2.9 percentage points, although spending added 1.2 percentage points, due entirely to increased menu prices.

Undoubtedly, broad economic pressures outside of management's control played a large role. This includes stubbornly high inflation and a weakening job market.

Management projected flat comps for this year. But its guidance came before the Iran war. With the spike in gas prices, this could further squeeze consumers' wallets, which may hurt Chipotle's short-term sales. However, when economic conditions improve, people will undoubtedly return to Chipotle.

And management continues to see expansion opportunities. Last year, it opened 316 restaurants, to reach 4,042. The company plans on adding 350 to 370 locations this year.

A bargain

Chipotle shares have dropped 10.4% this year. But the fast-casual restaurant chain has bright long-term prospects that remain robust, making this an opportune time to buy.

The stock slide translates into a better valuation since the start of the year. Its price-to-earnings (P/E) ratio has dropped from 32 to 29 during this time. That looks particularly attractive based on the historical P/E multiple. It has a five-year median P/E ratio of 53.

If this was a slow-growing, mature company, a lower valuation would make sense. However, it continues to have room for expansion, and people will once again clamor for Chipotle's offerings once the economic situation improves.

That makes the shares the best bargain in the S&P 500.

Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends the following options: short March 2026 $42.50 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.