Patrick Martin
1 min read
With the way negative stock market sentiment has piled up recently, short squeezes have generated some massive returns. Our Senior Quantitative Analyst Rocky White compiles a bi-weekly list of stocks most ripe for a short squeeze. The table features the equity's amount of total available float tied up in short interest, how much short interest has increased in the last month, and how underwater these bearish bettors are.
This screen finds stocks where the shorts might be at a big loss and therefore likely to begin covering. Obviously, there are quite a few assumptions so these would be very rough estimates. To estimate the return for the shorts, Rocky went back over the past year of short interest reports to find when the shorts were added. Then he used the average price over the prior two weeks and estimated the shorts were added at that average price. Below are stocks where significant shorts have been added and they could be at a big loss.
You'll notice some old friends there, like telehealth firebrand Hims & Hers Health Inc (NYSE:HIMS), earth exploration stock AST SpaceMobile Inc (NASDAQ:ASTS), and nuclear module reactor NuScale Power Corp (NYSE:SMR).
Tech and nuclear energy is making bears pay, while fast-casual restaurant stocks Shake Shack Inc (NYSE:SHAK) and CAVA Group Inc (NYSE:CAVA) are names to watch as well.
