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
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Profit From 5 Stocks Everyone Hates

Stocks in this article: GRMNADSSCGDKSO

SCANA Corporation

South Carolina-based electric and gas utility, SCANA Corporation (SCG), serves power and natural gas to around 1.5 million customers spread across three Southern states. Typically, regulated utilities are beloved by the most risk-averse investors, but not SCANA; the $6.1 billion firm currently has a short interest ratio of 13.27.

SCANA isn't just involved in distribution -- it's a major non-regulated infrastructure owner, with a big power generation arm, transmission assets and a fiber optic communication network. Vertical integration gives the firm net margins that weigh in the double digits; a healthy balance sheet gives SCG access to enough dry powder that it can handle a few economic potholes in the next couple of years. Exposure to high-margin nuclear energy gives SCG some big profitability advantages, especially as the firm works on building new nuclear plants in South Carolina.

For a utility stock, the dividend is everything -- and for shorts, the most common downside scenario comes from the possibility of a dividend cut. While SCANA's payout is hefty at 4.3%, the firm generates enough cash to cover its obligations for the foreseeable future.

Dick's Sporting Goods

Sporting goods retailer Dick's Sporting Goods (DKS) has managed a slam-dunk this year -- shares of the $6.2 billion firm have rallied 38% since January. But anxious investors have been taking the other side of the DKS trade all along the way -- the firm's short-interest ratio currently stands at 10.14.

Dick's is the league leader in the sporting goods business, with around 500 big box stores spread throughout the U.S. and another 81 Golf Galaxy locations under its belt. Because of its size, DKS can negotiate favorable contracts with suppliers that typically have the pricing power in the relationship. It also means that the firm can reap major supply-chain benefits and absorb costs across its entire store network, making merchandising improvements that much more attractive. Even though Dick's is the biggest game in town, however, there's still enough room for this chain to expand at this point.

With a product mix that leans on the higher-end, Dick's has built in enough big-margin offerings to generate margins that other retailers can't easily pull off. As the firm increases its private label offerings in its stores, those margins should keep growing.

3 of 4

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 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

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