This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Everyone Hates -- But You Should Love

Chipotle Mexican Grill

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

First up is $14 billion restaurant chain Chipotle Mexican Grill (CMG). Chipotle has been one of the biggest success stories in the restaurant industry, churning out fast-paced growth and major profitability during a time when other names were struggling.

But with shares off by more than 15% this year, are the shorts right about downside in Chipotle? Doubtful.

>>7 Food Stocks to Weather the Drought

Chipotle operates in the fast-casual segment of the market, a model that fills the space in between fast food chains and casual dining restaurants. That's proven to be a successful model in our post-recession world, with consumers trading down on their dining choices but looking for something healthier and more exciting than the traditional fast food joint.

With approximately 1,300 restaurants in 42 states and four countries, CMG has proven its willingness to dip a toe into new markets. While international exposure is a good thing, North American growth is the most important avenue for expansion in the next several years. With room for the firm to more than double the number of stores it has stateside before it starts to saturate the market, there's a good reason for the hefty earnings multiple investors are paying right now.

Better still, Chipotle has almost exclusively used cash from operations to finance its growth so far, maintaining an immaterial amount of debt on its balance sheet that's more than offset by a nearly $700 million cash and investment position. Short sellers have been betting against this stock en masse. While the firm's short interest ratio only sits at 4.6, indicating that it would take a week for shorts to cover, more than 12% of CMG's total float is short right now.

That makes the firm a prime candidate for a short squeeze right now.

2 of 6

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,053.38 -26.19 -0.15%
S&P 500 1,995.52 -1.22 -0.06%
NASDAQ 4,557.7350 +0.04 0.00%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs