14 Worst 52-Week High Stocks to Buy According to Short Sellers

12. Rocket Lab USA, Inc. (NASDAQ:RKLB)

52 Week Range: $3.47 – $7.53

Current Share Price: $7.12

Short % of Shares Outstanding: 11.47%

Number of Hedge Funds holding stakes as of Q2 2024:15

Rocket Lab USA, Inc. (NASDAQ:RKLB) is an aerospace company specializing in space operations and solutions for the aerospace and defense sectors. It offers launch support and solutions for space and defense markets. The firm offers launch support, spacecraft design services, parts, and production.

The stock has been flying high in response to better-than-expected second-quarter results. The company posted record quarterly revenues as it also narrowed its second-quarter loss. Revenue in the quarter was up by 71% to $106.3 million as net loss narrowed to $41.6 million from $45.9 million delivered a year ago.

Revenue growth in the quarter was a testament to growing demand for Rocket Lab USA, Inc. (NASDAQ:RKLB) launches service and space systems products. Additionally, the company is projecting third-quarter revenue of between $100 million and $105 million.

Amid the better-than-expected financial results, short sellers remain pessimistic about Rocket Lab USA, Inc. (NASDAQ:RKLB)’s long-term prospects even as it trades near its 52-week high. Short interest on the stock remains at a high of 11.47%.

The high short interest, which affirms why it is one of the worst 52-week high stocks to buy according to short sellers, has to do with growing concerns about the company’s long-term prospects. Despite analysts at Morgan Stanley maintaining a positive view of the firm’s future in the growing space sector, which encompasses launch services, satellite technology, and the design and production of components, the company recognizes the difficulties in speeding up the Development of new rockets.

Morgan Stanley’s outlook indicates that Rocket Lab’s success will mainly hinge on the firm’s ability to execute and the competitive environment within the space industry. In the second quarter, 15 hedge funds had stakes in Rocket Lab USA, Inc. (NASDAQ:RKLB).