These 5 Stocks Look Primed for a Short Squeeze

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While many peers are playing catch-up on the professional side of the auto parts market, O’Reilly has an established base of pro customers that it’s able to sell into. O’Reilly has managed to hand investors some solid performance so far this year. Shares of the $27 billion automotive chain have rallied nearly 9% since the calendar flipped to January, edging out the big stock averages by a meaningful margin.

Ideally that repurchase is done at a value below the price at which those shares were shorted. Today, the firm currently has a short interest ratio of just over 10, signaling that it would take two full weeks of buying pressure at current volume levels for short sellers to exit their bets against Deere. And as shares move back up toward this year’s highs, Deere could be a short squeeze candidate worth watching.

This company is a global importer and operates as a specialty retailer of imported decorative home furnishings and gifts in the North America. Wall Street analysts, on average, expect Pier 1 Imports to report revenue of $416.56 million on earnings of 24 cents per share. This company operates convenience stores under the name ’Casey’s General Store’, ’HandiMart’ and ’Just Diesel’ in nine Midwestern states, mainly Iowa, Missouri, and Illinois. Wall Street analysts, on average, expect Casey’s General Stores to report revenue of $1.91 billion on earnings of 85 cents per share.

By some estimates, solar installation may triple over the next five years. Calls are still outpacing puts today, but options bears are chiming in. So far, 7,913 puts have crossed the tape, which is double the intraday average, compared to 31,000 calls. Most popular is the September 8 call, followed by the 7 call in the same monthly series.

At last count, nearly one in six shares of CarMax’s float was being shorted, a stat that makes this used car specialist a prime short squeeze candidate. Shares are already back within grabbing distance of their ufx trading central 2016 highs this summer, and a push above $56 opens up a lot of technical upside potential from here. Is another heavily shorted automotive stock that’s a prime candidate for a short squeeze this summer.

That means that out of the 98.24 million shares in the tradable float, 21.57 million shares are sold short by the bears. If the bulls get the earnings news they’re looking for, then CIEN could rip higher post-earnings as the bears rush to cover some of their short positions. I would simply avoid PIR or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some near-term support levels at $18.79 to $18.05 a share with heavy volume.

Similar to PROG, AEI stock shows a percentage float short figure on the higher end of the spectrum. The list includes the stocks Marin Software and Exela Technologies, both of which have recently been labeled meme stocks. Newegg top 10 qa testing tools recently gained meme-stock status amid share gains that extended to 627% over a one-week period. The company is relying on telematics to get a bead on important safety characteristics of drivers before they become customers.

These companies give investors reasons beyond home building or home buying to own their stock. These may not be robust growth stocks, but during a housing downturn, you’ll take a little growth over a loss any day. Short sellers have been piling into CarMax in a meaningful way lately.

5 stocks ripe for short squeeze

This is what Matthew Cooper, Ph.D., chief scientific officer of Progenity, explained earlier this month. Unlike Enveric, Progenity is developing products for molecular testing. The company has worked on advancing things like its PreecludiaTM test to rule out preeclampsia in pregnant patients.

Stocks muscled their way to a second straight day of new all-time highs on Tuesday, with the S&P 500 making its way to gains of 5.4% for the year. At this point, 2016’s price appreciation hasn’t been outsized, but it has been steady. Exela, which has risen more than 70% over the past five days, has recently gained meme-stock status. The potential for a squeeze is going to depend on experimental treatment obeticholic acid for nonalcoholic steatohepatitis . NASH is a liver disease that affects up to 5% of the U.S. adult population, and can lead to fibrosis, cancer, or even death. It currently has no cure or therapies approved by the Food and Drug Administration.

Blue Apron Stock Looks Ripe for Short Squeeze

From a technical perspective, CASY is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending for the last three months, with shares dropping from its high of $59.95 to a recent low of $46.15 a share. During that move, shares of CASY have been mostly making lower highs and lower lows, which is bearish technical price action. That said, shares of CASY have recently started to rebound off that $46.15 low and move within range of triggering a near-term breakout trade. Look for volume on that move that hits near or above its three-month average action of 299,797 shares. If we get that breakout, then CASY will set up to re-test or possibly take out its 200-day moving average of $54.96 a share.

5 stocks ripe for short squeeze

Specifically, in response to Tuesday’s post-close release of the company’s fiscal third quarter results, shares jumped more than 14% on Wednesday and were up more than another 34% at one point on Thursday. These 5 stocks are ripe for a short squeeze after surging in popularity this past month, according to Fintel. On a total returns basis, the S&P 500 is on track to deliver full-year gains of 12.9% if the current pace for stocks continues. Even more impressive is the rally that the S&P has been enjoying since the broad market bottomed back in February.

Doubters continue to bet this ticker is due for a pullback, ignoring how undervalued shares are even with the brewing headwind.

Regardless, when short squeezes happen, they can bring the potential for some of the most extensive breakouts in the stock market today. Then we’ll dive into a list of potential short squeeze penny stocks that can be bought for under $5. To understand this, you’ll need to know what shorting is in the first place. Without getting into an entire lesson on short squeezes, let’s look at some basics.

5 stocks ripe for short squeeze

In our never-ending quest to find the best opportunities the market has to offer, we’ve uncovered two names that fit this bill. Not only is there high short-interest to fuel a sharp rally in prices but the two are outperforming expectations and set up for a rebound. The current short interest as a percentage of the float for Casey’s General Stores is notable at 4.7%. That means that out of the 38.03 million shares in the tradable float, 1.79 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 7.2%, or by about 120,000 shares. If the bears are caught pressing their bets into the quarter, then we could easily see a decent short-squeeze develop post-earnings.

GETY, PEGY: The Top 5 Short Squeeze Stocks to Watch This Week

That huge brand value also translates into smaller, consumer and prosumer-grade equipment. The firm’s bread and butter is still the ag market; all told, Deere owns about half of the North American market for heavy agricultural equipment. O’Reilly Automotive is the No. 2 car parts retailer in the country, with 4,571 locations spread from coast to coast. The firm has a dual sales channel, selling both to do-it-yourself consumers as well as professional repair shops.

  • The higher the short ratio, the higher the potential profits when the shorts get squeezed.
  • This stock has been downtrending for the last three months, with shares dropping from its high of $59.95 to a recent low of $46.15 a share.
  • That’s a very good thing for the firm’s bottom line, with used car margins typically twice as large per unit as the profits made on new cars.
  • That has short-interest in highly-shorted names on the decline but still ripe for a squeeze.
  • New products like bamboo, Chinese fir trees, and Camellia oil came with this purchase.

A recent study demonstrated that Preecludia could “significantly distinguish” between the presence and absence of preeclampsia. Furthermore, this month Progenity was granted a patent for its preeclampsia rule-out test. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. A company generally reaches meme-stock status once there’s enough chatter on forums like Reddit’s WallStreetBets and Stocktwits. They include Exela Technologies and Newegg, both of which have recently been labeled meme stocks. As you might imagine, the concept is getting a lot of buzz, but it’s also generating substantial losses at the moment.

Tips for Finding Your Next Great Stock Pick

This is a provider of equipment, software and service solutions that support the transport, switching, aggregation and management of voice, video and data traffic on communications networks. Wall Street analysts, on average, expect Ciena to report revenue of $468.43 million on a loss of 6 cents per share. Which is set to release its numbers on Thursday before the market open.

”To estimate the return for the shorts, I went back over the past year of short interest data to find when the bearish bets were placed,” noted White. The rise of crowd-sourced short-squeeze activity has short-sellers cautious if not running scared. The potential for losses is great in the high-stakes game of financial cat-and-mouse and smart-money doesn’t like to get burned when it can do something to prevent it. That has short-interest in highly-shorted names on the decline but still ripe for a squeeze.

Accounts receivables are increasing considerably ($3.2M at the end of 2021, $5.6M at the end of Q1/22 and $8.3M at the end of Q2/22) which could generate some concerns. However, this is money owed by the government in the form of ACP subsidies, it shouldn’t be a cause for concern in our view. Internet access has become a crucial service for seeking jobs, education, finances, and even healthcare, as the pandemic showed.

We have to admit we find that a little puzzling as it’s difficult to argue with the math we set out above. It seems pretty unlikely to us that management is making these numbers up, given that insiders hold half of the company’s shares with the CEO alone good for 1/3 of outstanding shares. In 2005 a chance invitation to attend the seminar “How To Buy And Sell Your Own Stocks” altered his worldview.

If Sprint can show investors some more-palpable progress come earnings time, any hint at higher ground could be enough to send short sellers running. With 26% of this stock’s float currently being shorted, market participants clearly have a dim view of the nation’s fourth-largest cellular carrier. But that outsized shorting could translate into how much money can i make day trading forex a short squeeze, even if the firm fails to make any fundamental progress by first quarter earnings at the end of this month. On the more traditional side of biotechnology, Progenity has also come onto this list of short squeeze stocks. Most outlets show PROG stock short float percentage over 40% right now, which is high by any account.

Soon trading and stocks consumed his every waking moment to the point of excluding all else. Thomas now enjoys a much different lifestyle engaged in his true passion, uncovering great investments. Learn about financial terms, types of investments, trading strategies, and more. MarketBeat All Access members have access to premium reports, best-in-class portfolio monitoring tools, and our latest stock picks.