This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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

Stocks in this article: JCP LEN UA CMG SWY

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,237.32 +168.45 0.99%
S&P 500 1,997.06 +24.32 1.23%
NASDAQ 4,609.1760 +61.3420 1.35%

Brokerage Partners

Rates from Bankrate.com

  • 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