This article will look into the 10 best short-squeeze stocks that have gained analysts’ attention.
Stock market trading has an ever-changing environment. Short squeeze is among the few phenomena capable of capturing and holding the attention of such markets. The phenomenon involves a heavily shorted stock suddenly experiencing a rapid price increase, urging short sellers to buy shares to cover their positions, thereby accelerating the upward momentum. Astute investors make significant gains out of the scenario upon identifying these opportunities in their early stages. After Donald Trump’s ascension to the U.S. Presidency, recent market activities have demonstrated the significance of short squeezes.
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Tariff rates were the first aspect to take a hit and directly impact the stock market after President Trump’s arrival in the White House. The U.S. announced a 25% tariff on imports from Mexico and Canada, effective March 4, 2025. The announcement came alongside increased tariffs on Chinese goods from 10% to 20%. These new tariff rates sent ripples through the financial markets, affecting the stocks in the U.S. and beyond, as countries like Canada started countering the move by threatening to increase tariffs on U.S. products as well.
By March 6, 2025, the U.S. President signed orders and brought many goods to the list of exemptions from his new tariffs on Canada and Mexico. For instance, CNN reported a temporary halt on the new 25% tariff rates on imports for carmakers from Canada and Mexico. However, the decision did not alleviate the substantial adverse effect the U.S. stock market felt. CNBC noted that individual investors pulled $1.2 billion from the U.S. equity market, the highest ever in the decade.
However, tariffs do not only affect the volatility of the U.S. market. Various incidents contribute to the shifts in the broader market, setting the stage for potential short squeezes. For instance, the advent of new AI models from China initially caused a wave in the technological industry, leading many of the giant tech companies to witness a never-before-seen decline in their return. These foreign AI models were comparatively more flexible yet cheaper than their U.S. counterparts, thus resulting in many investors pulling their investment from tech companies.
The hedge funds have been reducing their holdings in Chinese equities for the fourth consecutive week; however, the enthusiasm for Chinese tech stocks, initially sparked by the new AI startups, began to wane. The trend reflects a cautious approach, possibly opening avenues for short-squeeze opportunities in other sectors.
Furthermore, Asia-focused hedge funds have performed better than their U.S. counterparts during recent market sell-offs. Owing to the recent market volatility in the U.S., global investors sought refuge in the Chinese stocks, eventually contributing to this outperformance. These events increase the potential for short-squeeze scenarios in different markets, including the U.S.
These developments have led to an upward trend in the attention of analysts on stocks with high short interest and substantial upside potential. Hence, investors will find it beneficial to their investment portfolio to delve into the top 10 short-squeeze stocks to consider, as recommended by leading analysts.
So, stick with us as we countdown the 10 best short squeeze stocks to buy, from 10 to 1. You will find the top 5 on the list, which is the most interesting.
Image by Sergei Tokmakov Terms.Law from Pixabay
Our Methodology
We compiled our list using a few key financial metrics. Primarily, we took stocks with Short Float of over 15%. This is a critical factor for potential short squeezes, representing significant short interest. We also filtered our list based on Relative volume. Our list comprises stocks with a Relative Volume of over 1.5, indicating higher-than-usual trading activity.
Additionally, we included only those with Positive EPS to signify profitability. We refined our selection further by considering only the stocks with a Buy or better recommendation from analysts, as this ensured they had favorable market sentiment. Lastly, we included only stocks with an average trading volume of at least 100K, providing sufficient liquidity. The final list was ranked based on the analysts’ upside potential, which was used to deliver the highest expected price appreciation in our article. We also found it helpful to mention the number of hedge funds from Insider Monkey’s Q4 2024 database, following each stock in our list, to allow the investors to understand their level of institutional interest.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Groupon, Inc. (NASDAQ:GRPN)
Short % of Float: 29.34%
Number of Hedge Fund Holders: 17
Analysts Upside Potential: 14.48%
The Chicago-based company, Groupon, Inc. (NASDAQ:GRPN) is an online marketplace connecting consumers with local businesses through discounted deals on services, travel, and experiences. Unlike traditional e-commerce platforms, Groupon focuses on hyper-local engagement. Specifically, through the promotion, the company helps small businesses become more visible in the market. In addition to merchant visibility, the company creates value by driving foot traffic. Europe and Australia are some places where the company’s business reaches beyond the U.S.
With 29.34% of its float sold short, Groupon, Inc. (NASDAQ:GRPN) is positioned as one of the best short-squeeze candidates. The positive 8% billings growth in North America Local during Q4 suggests a significant turnaround from a previous decline. Additionally, the technical migration of the company, including the fraud detection platform, North American cloud infrastructure, new website, and ERP system, indicates a high potential for growth in future value.
As per the Insider Monkey database of Q4 2024, 17 funds currently hold positions in Groupon, Inc. (NASDAQ:GRPN), increasing the institutional interest in the stock. Analysts have issued a consensus Buy rating and a $17 price target, indicating a 14.48% upside from its current valuation of $14.85. The upside is more moderate compared to other short-squeeze stocks. Nonetheless, a strong investor interest alongside significant short exposure raises the potential for price volatility.
9. TG Therapeutics, Inc. (NASDAQ:TGTX)
Short % of Float: 18.24%
Number of Hedge Fund Holders: 36
Analysts Upside Potential: 17.53%
TG Therapeutics, Inc. (NASDAQ:TGTX), headquartered in New York City, is a biopharmaceutical company focused on developing treatments for B-cell malignancies and autoimmune diseases. The company’s flagship product, Briumvi, targets chronic lymphocytic leukemia and multiple sclerosis. It maintains its competitiveness in the market by focusing on novel combination therapies that aim at improving efficacy in hematologic and autoimmune conditions.
Holding a short interest of 18.24%, TG Therapeutics, Inc. (NASDAQ:TGTX) has attracted substantial market attention. The fourth quarter results announced by the company showed that it performed well, with revenue that exceeded its target guidance. Additionally, BRIUMVI’s five-year follow-up data indicated neutralized disability progression in 92% of patients, with a low annualized relapse rate. The current positive outlook for the company is also contributed by its patent portfolio expansion, whereby TG Therapeutics, Inc. (NASDAQ:TGTX) gained protection for BRIUMVI through 2042.
Institutional investors, with 36 hedge funds on board, maintain confidence in the company’s long-term prospects, as per Insider Monkey’s database of Q4 2024. Analysts remain bullish as they gave a consensus Buy rating and forecasted a 17.53% upside, with a one-year median price target of $48 against its current trading price of $40.84. TG Therapeutics, Inc. (NASDAQ:TGTX) remains a notable contender for investors monitoring short-squeeze potential, though it has a low upside compared to other entries in the list.
8. 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS)
Short % of Float: 35.86%
Number of Hedge Fund Holders: 13
Analysts Upside Potential: 71.23%
1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS), headquartered in Jericho, New York, is a leading e-commerce retailer specializing in floral arrangements, gourmet food, and personalized gifts. The company differentiates itself through a diverse brand portfolio, including Harry & David and Cheryl’s Cookies. With these brands and a broad product portfolio, the company offers a one-stop gifting solution. It leverages AI-driven personalization and an extensive distribution network to compete in the markets, including the United States, Canada, and the United Kingdom.
1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) has a significant short interest of 35.86%, among the top short squeeze candidates. The company reported revenue and net income of $775.5 million and $64.3 million, respectively, gaining a positive outlook from analysts. Additionally, launching a limited edition of Frank’s RedHot Buttercream-Frosted Cookie, through a partnership with Cheryl’s Cookies, has also been translated well among the market experts. The move is seen as a predecessor to more future collaborations, which would expand the company’s market value.
Institutional confidence is translated to moderate with 13 hedge funds from the Insider Monkey database maintaining stakes in 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) at the end of Q4 2024. Analysts remain optimistic, as reflected in their Buy rating for the stock. They have set a median target of $10, a potential gain of 71.23% from its current price of $5.84. The high short percentage of the stock suggests that any positive catalyst could trigger a rapid short-covering rally.
7. Applied Optoelectronics, Inc. (NASDAQ:AAOI)
Short % of Float: 20.34%
Number of Hedge Fund Holders: 23
Analysts Upside Potential: 71.87%
Texas-based manufacturing company, Applied Optoelectronics, Inc. (NASDAQ:AAOI) is manufacturing and supplying fiber-optic networking products. The company’s product portfolio includes diode lasers, photodiodes, subassemblies, and related modules and equipment. It strives to stay at the forefront of technological advancements in optoelectronics by focusing on R&D. Regions served by the company include the United States, Taiwan, and China.
Applied Optoelectronics, Inc. (NASDAQ:AAOI) enters our list of best short-squeeze stocks with a high short percentage of float of 20.34% as of February 28, 2025. The company reached value after releasing its fourth-quarter earnings call, announcing an increase in CATV segment revenue, up more than 4x year-over-year. The stock price has recently rallied, potentially due to the warrant agreement with Amazon. This is expected to result in a further increase in demand as short sellers scramble to cover their positions.
Institutional interest in the stock remains high, with 23 hedge fund portfolios from Insider Monkey’s Q4 2024 database holding stakes in Applied Optoelectronics, Inc. (NASDAQ:AAOI). Analysts have given a consensus Buy rating, with a 1-year median price target of $38. The upside potential is 71.87%, which makes it the best buy for investors interested in a short squeeze.
6. ArriVent BioPharma, Inc. (NASDAQ:AVBP)
Short % of Float: 15.37%
Number of Hedge Fund Holders: 9
Analysts Upside Potential: 85.71%
ArriVent BioPharma, Inc. (NASDAQ:AVBP), based in Newtown Square, Pennsylvania, specializes in identifying and developing biopharmaceutical treatments sourced from global research hubs. The company focuses on oncology, as it leverages partnerships with international drug developers to advance promising therapies. Commercialization is boosted with the company capitalizing on late-stage drug candidates. The company prioritizes global collaboration, serving the United States, China, and Europe.
ArriVent BioPharma, Inc. (NASDAQ:AVBP) is gaining traction as a potential short-squeeze investment, with a short interest of 15.37%. The company raised $183.2 million through IPO after deducting underwriting discounts, commissions, and other offering expenses. Subsequently, the company’s R&D expenses grew from $64.9 million to $79.0 million between 2023 and 2024, suggesting optimal use of funds for better candidate delivery. Accordingly, ArriVent anticipates 2025 updates for EGFR PACC plans, ARR-217 IND filing, and firmonertinib Phase 3 top-line data release, translating to a positive outlook in the market.
The institutional exposure is moderate, with nine hedge funds from the Insider Monkey Q4 2024 database invested in ArriVent BioPharma, Inc. (NASDAQ:AVBP). Analysts are optimistic, rating the stock a Buy with an 85.71% upside potential. The one-year price target stands at $39. The current price is $21, attracting investors looking for the best short-squeeze stocks.
5. The Lovesac Company (NASDAQ:LOVE)
Short % of Float: 21.91%
Number of Hedge Fund Holders: 33
Analysts Upside Potential: 125.8%
The Lovesac Company (NASDAQ:LOVE), headquartered in Stamford, Connecticut, designs and sells modular furniture, including signature Sectionals with customizable, reconfigurable seating solutions. The company differentiates itself from traditional furniture retailers by concentrating on sustainable materials and washable, durable covers. In doing so, they appeal to the modern eco-conscious consumers. With showrooms across 41 states, the company competes with market leaders like La-Z-Boy and IKEA by emphasizing innovation and flexibility in home furnishings.
The Lovesac Company (NASDAQ:LOVE) has a notable short interest of 21.91%, turning it into a potential short-squeeze target for investors. The rise comes after the company announced its outlook guidance for 2025. The company anticipates net sales in the range of $660 million to $680 million and an adjusted EBITDA of $37.5 million to $48.5 million. The company aims to cover these projections by entering the loveseat, sofa, and chair category with the launch of EverCouch in 2025 and expanding beyond its Sactionals format, thereby experiencing a positive reception in the market.
Institutional investors are heavily involved in The Lovesac Company (NASDAQ:LOVE), with 33 hedge funds, followed by Insider Monkey, holding stakes at the end of Q4. Analysts remain bullish, assigning a Buy rating and setting a price target of $35, representing an upside of 125.81% from the current price of $15.50. The strong institutional support and high short interest suggest that any positive developments could lead to a wave of short covering.
4. CervoMed Inc. (NASDAQ:CRVO)
Short % of Float: 16.91%
Number of Hedge Fund Holders: 3
Analysts Upside Potential: 132.9%
CervoMed Inc. (NASDAQ:CRVO), based in Boston, Massachusetts, is a clinical-stage biotechnology company. The focus of the company is laid on developing treatments for neurodegenerative diseases such as Alzheimer’s and Parkinson’s. Its drug candidates focus on reducing neuroinflammation and improving cognitive function. The company handles itself against competitors with its precision medicine approach that targets the root causes of cognitive decline.
With a short interest of 16.91%, CervoMed Inc. (NASDAQ:CRVO) is attracting attention as a potential short-squeeze candidate. The short percent of float rose after the company announced positive results for its Phase 2b clinical study of Neflamapimod in patients with dementia with Lewy bodies. The company’s price initially decreased, as it reported an EBITDA of -$4.75 million by September 30, 2024. However, the gross margin remained positive. The critical milestone set by the new positive results on its potential leading candidate, neflamapimod, increases its positive outlook among analysts.
Analyst sentiment remains bullish, even though only three hedge funds held positions in the company, as per Insider Monkey’s database of Q4 2024. The stock carries a Buy rating, with a remarkable upside potential of 132.92%, as analysts set a one-year price target of $15. With the current price being $6.44, the stock presents an appealing opportunity for investors banking on short-covering rallies.
3. indie Semiconductor, Inc. (NASDAQ:INDI)
Short % of Float: 29.75%
Number of Hedge Fund Holders: 22
Analysts Upside Potential: 199.1%
Headquartered in Aliso Viejo, California, indie Semiconductor, Inc. (NASDAQ:INDI) carries on the business of developing system-on-chip (SoC) solutions for automotive applications, including advanced driver-assistance systems (ADAS), user interfaces, and in-cabin monitoring. The company sets itself apart from its competitors by specializing in automotive-grade mixed-signal semiconductors for smart vehicles. Having established business in the U.S., Canada, England, Japan, South Korea, and China, among others, the company focuses on power efficiency and integration to sustain its position in the market.
As of February 28, 2025, indie Semiconductor, Inc. (NASDAQ:INDI)’s short interest stands at an elevated 29.75%, placing it in prime short-squeeze territory. Though the company’s operating loss has increased during the fourth quarter of 2024, some of its advancements in business operations suggest strong growth. For instance, front sensing and interior monitoring design and multichannel applications like eMirror have garnered attention from South Korean and Chinese OEMs. The improvements have the potential to translate positively in the market, which made the company also part of our 10 Best Semiconductor Penny Stocks.
Strong investor confidence can be recognized with 22 hedge funds backing indie Semiconductor, Inc. (NASDAQ:INDI) and a consensus Buy rating. Analysts project a staggering 199.15% upside, setting a price target of $7 compared to the current $2.34. With such growth potential alongside the high short percentage, short sellers may scramble to cover, leading to significant price appreciation.
2. Taysha Gene Therapies, Inc. (NASDAQ:TSHA)
Short % of Float: 16.43%
Number of Hedge Fund Holders: 20
Analysts Upside Potential: 306.98%
Based in Dallas, Texas, a clinical-stage biotechnology company, Taysha Gene Therapies, Inc. (NASDAQ:TSHA) focuses on gene therapies for rare neurological disorders. Unlike most competitors, the company leverages a targeted approach involving AAV-based gene therapy to address central nervous system diseases. Based on its mission statement, the company is developing transformative gene therapies to eradicate monogenic diseases of the central nervous system (CNS).
Taysha Gene Therapies, Inc. (NASDAQ:TSHA) has a short interest of 16.43%, positioning it as a candidate for a short squeeze. In the recent quarter, the company has seen increased expenses, including R&D and administrative costs. The expenses are rewarding since the company has announced positive clinical data from its TSHA-102 program. The program showed functional gains in patients with Rett syndrome. Additionally, the company has completed dosing in Part A of its REVEAL trials and is moving toward the pivotal Part B trials. These positive results place the company among the best short-squeeze stocks.
With 20 hedge funds holding stakes in Taysha Gene Therapies, Inc. (NASDAQ:TSHA) from the Insider Monkey database at the end of Q4 2024, the stock has received a Buy rating from analysts, thereby gaining a strong institutional watch. Analysts predict a massive 306.98% upside, setting a price target of $7. At the current price of $1.72, TSHA offers an attractive opportunity for substantial gains driven by short-covering activity.
1. Altimmune, Inc. (NASDAQ:ALT)
Short % of Float: 28.36%
Number of Hedge Fund Holders: 18
Analysts Upside Potential: 322.3%
Headquartered in Gaithersburg, Maryland, a clinical-stage biopharmaceutical company Altimmune, Inc. (NASDAQ:ALT) is focused on developing immunotherapies and vaccines for metabolic diseases and infectious diseases. The company uses its proprietary intranasal vaccine platform and peptide-based therapeutics to target obesity and liver diseases. With business in Europe and the U.S., the company prioritizes innovative delivery techniques for improved efficacy.
With a short interest of 28.36%, Altimmune, Inc. (NASDAQ:ALT) stands out as one of the strong contenders for a short squeeze. The company has incurred losses in Q4 owing to increased expenses year-over-year. On the other hand, Altimmune also claimed in the report that they had completed enrollment in its phase 2b trial for pemvidutide in MASH. With top-line data expected in Q2 2025, the positive announcement leads to stock rallying, as the drug is expected to reduce liver fat, body weight, and markers of inflammation.
Altimmune, Inc. (NASDAQ:ALT) has attracted the attention of 18 hedge funds listed in Insider Monkey at the end of Q4 2024, signaling strong institutional backing. With a consensus Buy rating, analysts project an astounding 322.30% upside with a price target of $25 for Feb 2026, compared to the current trading price of $5.92. With such high projections and strong short interest, the stock presents a compelling opportunity with explosive price action given the right conditions.
According to analysts, Altimmune, Inc. (NASDAQ:ALT) ranks first on our list of best short squeeze stocks to buy. While we acknowledge the potential for ALT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALT but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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