Almost no matter what any market expert says, a small group of companies will remain hated by investors and analysts. The Fool's analysts have even named 10 of these stocks.
But, there's another group of stocks that have a chance to be unfairly hammered in the near future. These are also some of the best dividend stocks in the market, but because of the risk, you have to understand the upside potential.
Let's take a look at three of the most hated meme stocks that, even if some analysts are saying they're overvalued, you'll want to buy as soon as you can.
1. TripAdvisor (TRIP)
According to a recent survey of online adults from April 2018, on average travelers dislike traveling more than almost anything else. No surprise there. You might think the companies that run TripAdvisor (NASDAQ: TRIP) would see this -- like any business on the planet, they depend on consumer behavior. But, you'd be wrong.
Since a trip involves more than just getting from Point A to Point B, TripAdvisor provides information on activities, attractions, dining, lodging, shopping, local activities, travel, and experiences. Consumers use it to book the trips they want and to have the knowledge to make informed choices.
And it's not just consumers -- restaurants can use it to improve the way they manage their businesses. This is, by the way, the very reason that TripAdvisor has endured the seemingly never-ending growth narrative that has plagued the online travel space for years. The company has consistently churned out higher-end content that draws more traffic, and that drives up the revenue from those who use it.
2. Dick's Sporting Goods (DKS)
Again, when a consumer starts to hate something -- whether it's technology, a product, or a company -- there's always a reason that it's time to get out. Dick's Sporting Goods (NYSE: DKS) has had its problems for years.
It's a long road to see these relative moves, but they all point to Dick's stock being unfairly pummeled.
So what is the reason for the hate? In short, it's the "fire sales" that have become routine for the sports apparel retailer.
Remember that in 2013, Dick's earned less than $5.00 per share. It was profitable, but it had a customer base (its customers) that was "discontent" with a retailer. Given that, it wouldn't have surprised anyone if it had started holding fire sales that discounted its merchandise to take advantage of its "unhappy" customers.
But the company has done the opposite. Instead, it has consistently increased its store count, it has introduced private brands (even if they've had a slow start), and it has expanded its off-price, outlet, and value channels. By doing this, it has built a huge online presence, reached a much larger market, and increased its margins, all without lowering its prices.
This is part of the reason why the market has turned its back on Dick's Sporting Goods. But that doesn't mean the business isn't worth buying.
3. Kimco Realty (KIM)
While Amazon (NASDAQ: AMZN) dominates e-commerce, it's hard to ignore its physical presence. Prime members have enjoyed free two-day shipping for more than two decades. These loyal customers tend to spend more.
This includes not only more shopping, but more eating and living at its many storefronts. By acquiring all its real estate, Amazon has helped build a "cable network" of physical stores. It also has, not surprisingly, eaten into some of the retail space that's not Prime- or Supermarket Sweep-worthy.
Here's where Kimco Realty (NYSE: KIM) comes in.
Kimco is one of the largest owners of shopping centers in the United States. Most of these properties are single-tenant -- think Starbucks or Dollar General -- or have a mix of tenants. However, some (especially in the top-performing markets) have long-term leases.
Kimco owns retail properties across the country, including major retail centers like Tysons Corner Center and The Promenade at Inland Dunes. Its portfolio includes about 70 million square feet of space, but its flagship is Manhattan West, which houses big names like Sephora, Microsoft, and Nordstrom Rack.
Some might consider it an overpaid mall landlord, but I'm not sure that's the case. The company's properties are experiencing growth, and a big catalyst will come from these properties being built up.
In the meantime, there's a lot to like about KIM stock. With no debt and around $300 million in free cash flow annually, the company has the funds to pay out a dividend that currently yields 6.5%.
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