In this article, we discuss the 15 best short squeeze stocks to buy now. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best Short Squeeze Stocks To Buy Now.
The retail investor frenzy at the stock market and the short squeeze saga involving GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings, Inc. (NYSE: AMC) at the beginning of this year has resulted in a lot of interest in stocks with high short interest. The main battle, between retail investors and hedge funds, has resulted in billions of dollars in losses for hedge funds. Data from S3 Partners, a New York-based market intelligence firm, shows that GameStop short-sellers have lost $7.3 billion so far this year.
The losses for AMC short-sellers this year also stand close, clocking in at around $4.5 billion, the market intelligence firm estimates. A short squeeze happens when the share price of an equity rises unexpectedly and short-sellers, who have money riding on the stock to lose value, try to exit their short positions to limit losses. Some of the stocks with high short interest presently include Katapult Holdings, Inc. (NASDAQ:KPLT), Big 5 Sporting Goods Corporation (NASDAQ:BGFV), and Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT), among others.
The interaction hubs of retail investors, like social media platform Reddit, have sparked a lot of interest on Wall Street in recent months as hedge funds track Reddit forums to keep abreast of latest developments around stocks with high short interest. Financial services firm IHS Markit, in a study published earlier this year, revealed that the most-shorted stocks on the market in January this year outperformed the least-shorted ones by a factor of close to 24%. It seems like retail investors are slowly transforming overall market dynamics in their favor.
The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021 our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the SPY. Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
Our Methodology
With this context in mind, here is our list of the 15 best short squeeze stocks to buy now. The aim of the article is to provide a basic rundown of the companies most likely to be involved in a short squeeze in the coming weeks.
The list is ranked according to the number of hedge fund holders in each company. Data from the 873 funds tracked by Insider Monkey was used for this purpose. The short interest on each stock is also mentioned for further clarity.
Special importance was assigned to outlining the analyst ratings and business fundamentals for each firm to provide readers with some context so they can make more informed investment choices.
Best Short Squeeze Stocks To Buy Now
15. Greenidge Generation Holdings Inc. (NASDAQ:GREE)
Number of Hedge Fund Holders: N/A
Short Interest: N/A
Greenidge Generation Holdings Inc. (NASDAQ:GREE) is ranked fifteenth on our list of 15 best short squeeze stocks to buy now. The firm owns and operates Bitcoin mining facilities and is headquartered in New York.
Greenidge Generation Holdings Inc. (NASDAQ:GREE) has a market cap of more than $1 billion. The firm employs more than 14,000 miners. It also has interests in the utilities business – the company distributes electricity through a natural gas power generation facility.
Greenidge Generation Holdings Inc. (NASDAQ:GREE) recently completed a merger with Support.com but the stock plunged more than 50% in value on the day after the merger. The firm remains one of the most discussed stocks on Reddit forums over the past week.
Just like GameStop Corp. (NYSE:GME), AMC Entertainment Holdings, Inc. (NYSE:AMC), Katapult Holdings, Inc. (NASDAQ:KPLT), Big 5 Sporting Goods Corporation (NASDAQ:BGFV), and Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT), Greenidge Generation Holdings Inc. (NASDAQ:GREE) is one of the stocks with a high short interest.
14. SCWorx Corp. (NASDAQ:WORX)
Number of Hedge Fund Holders: N/A
Short Interest: 5.18%
SCWorx Corp. (NASDAQ:WORX) is a New York-based firm that provides software solutions to healthcare providers. It is placed fourteenth on our list of 15 best short squeeze stocks to buy now.
SCWorx Corp. (NASDAQ:WORX) has a market cap of more than $22 million and posted over $5 million in revenue last year. The 52-week price range of the stock lies between $1 and $5. The company was founded in 2012.
In July, the law firm of the former attorney general of Louisiana, Charles Foti, announced that it had begun an investigation to identify irregularities into a COVID-19 testing kits purchase order that SCWorx Corp. (NASDAQ:WORX) said it inked with Rethink My Healthcare in April 2020.
13. Sphere 3D Corp. (NASDAQ:ANY)
Number of Hedge Fund Holders: 2
Short Interest: 2.74%
Sphere 3D Corp. (NASDAQ:ANY) is ranked thirteenth on our list of 15 best short squeeze stocks to buy now. The firm provides data management and application solutions. It is headquartered in Canada.
In earnings results for the second quarter, posted on August 17, Sphere 3D Corp. (NASDAQ:ANY) reported earnings per share of -$0.19 and a revenue of $0.8 million, nearly identical to the revenue over the same period last year.
At the end of the second quarter of 2021, 2 hedge funds in the database of Insider Monkey held stakes worth $435,000 in Sphere 3D Corp. (NASDAQ:ANY), down from 1 in the preceding quarter worth 379,000.
Along with GameStop Corp. (NYSE:GME), AMC Entertainment Holdings, Inc. (NYSE:AMC), Katapult Holdings, Inc. (NASDAQ:KPLT), Big 5 Sporting Goods Corporation (NASDAQ:BGFV), and Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT), Sphere 3D Corp. (NASDAQ:ANY) is one of the stocks attracting the interest of short-sellers.
12. BIT Mining Limited (NYSE:BTCM)
Number of Hedge Fund Holders: 4
Short Interest: 12.83%
BIT Mining Limited (NYSE:BTCM) is placed twelfth on our list of 15 best short squeeze stocks to buy now. The firm engages in cryptocurrency mining operations and is headquartered in Hong Kong.
On August 17, BIT Mining Limited (NYSE:BTCM) posted earnings results for the second quarter, reporting earnings per share of $0.03 and a revenue of $445 million, up from $516,000 over the same period last year.
At the end of the second quarter of 2021, 4 hedge funds in the database of Insider Monkey held stakes worth $1.4 million in BIT Mining Limited (NYSE:BTCM).
11. Beam Global (NASDAQ:BEEM)
Number of Hedge Fund Holders: 5
Short Interest: 34.82%
Beam Global (NASDAQ:BEEM) is a California-based company that makes and sells renewable energy products. It is ranked eleventh on our list of 15 best short squeeze stocks to buy now.
On August 13, investment advisory BTIG maintained a Buy rating on Beam Global (NASDAQ:BEEM) stock but lowered the price target to $42 from $50, noting that material costs for the firm were drawing on the margins.
At the end of the second quarter of 2021, 5 hedge funds in the database of Insider Monkey held stakes worth $5 million in Beam Global (NASDAQ:BEEM), down from 7 in the previous quarter worth $17 million.
Along with GameStop Corp. (NYSE:GME), AMC Entertainment Holdings, Inc. (NYSE:AMC), Katapult Holdings, Inc. (NASDAQ:KPLT), Big 5 Sporting Goods Corporation (NASDAQ:BGFV), and Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT), Beam Global (NASDAQ:BEEM) is one of the stocks that might undergo a short squeeze.
10. Vinco Ventures, Inc. (NASDAQ:BBIG)
Number of Hedge Fund Holders: 5
Short Interest: 21.52%
Vinco Ventures, Inc. (NASDAQ:BBIG) is a Pennsylvania-based consumer products research and development firm. It is placed tenth on our list of 15 best short squeeze stocks to buy now.
In earnings results for the second quarter, posted on August 23, Vinco Ventures, Inc. (NASDAQ:BBIG) reported earnings per share of -$5.13 and a revenue of $2.6 million, down 48% compared to the revenue over the same period last year.
At the end of the second quarter of 2021, 5 hedge funds in the database of Insider Monkey held stakes worth $3.2 million in Vinco Ventures, Inc. (NASDAQ:BBIG), up from 1 in the previous quarter worth $59,000.
9. Prelude Therapeutics Incorporated (NASDAQ:PRLD)
Number of Hedge Fund Holders: 6
Short Interest: 35.57%
Prelude Therapeutics Incorporated (NASDAQ:PRLD) is placed ninth on our list of 15 best short squeeze stocks to buy now. The company operates as a clinical-stage precision oncology firm and is headquartered in Delaware.
On July 27, investment advisory Bank of America upgraded Prelude Therapeutics Incorporated (NASDAQ:PRLD) stock to Buy from Neutral with a price target of $60, noting that the valuation of the firm offered an attractive buying opportunity for investors.
At the end of the second quarter of 2021, 6 hedge funds in the database of Insider Monkey held stakes worth $866 million in Prelude Therapeutics Incorporated (NASDAQ:PRLD), down from 7 in the previous quarter worth $1.3 billion.
GameStop Corp. (NYSE:GME), AMC Entertainment Holdings, Inc. (NYSE:AMC), Katapult Holdings, Inc. (NASDAQ:KPLT), Big 5 Sporting Goods Corporation (NASDAQ:BGFV), and Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) are some of the stocks that short sellers have their eye on, alongside Prelude Therapeutics Incorporated (NASDAQ:PRLD).
8. Tattooed Chef, Inc. (NASDAQ:TTCF)
Number of Hedge Fund Holders: 7
Short Interest: 36.09%
Tattooed Chef, Inc. (NASDAQ:TTCF) is a California-based company that produces and sells plant-based food products. It is ranked eighth on our list of 15 best short squeeze stocks to buy now.
In earnings results for the second quarter, posted on August 12, Tattooed Chef, Inc. (NASDAQ:TTCF) reported earnings per share of -$0.65 and a revenue of more than $50 million, missing analyst estimates by $3 million but up 45% year-on-year.
At the end of the second quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $38 million in Tattooed Chef, Inc. (NASDAQ: TTCF), down from 10 in the preceding quarter worth $58 million.
7. Blink Charging Co. (NASDAQ:BLNK)
Number of Hedge Fund Holders: 7
Short Interest: 35.83%
Blink Charging Co. (NASDAQ:BLNK) is a Florida-based company that provides electric vehicle charging equipment and related services. It is placed seventh on our list of 15 best short squeeze stocks to buy now.
On August 26, investment advisory DA Davidson initiated coverage of Blink Charging Co. (NASDAQ:BLNK) stock with a Neutral rating and a price target of $31, noting that the firm offered industry-leading charging speeds.
At the end of the second quarter of 2021, 7 hedge funds in the database of Insider Monkey held stakes worth $14 million in Blink Charging Co. (NASDAQ:BLNK), down from 12 in the previous quarter worth $40 million.
GameStop Corp. (NYSE:GME), AMC Entertainment Holdings, Inc. (NYSE:AMC), Katapult Holdings, Inc. (NASDAQ:KPLT), Big 5 Sporting Goods Corporation (NASDAQ:BGFV), and Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) are some of the high short interest stocks, just like Blink Charging Co. (NASDAQ:BLNK).
6. Aterian, Inc. (NASDAQ:ATER)
Number of Hedge Fund Holders: 8
Short Interest: 29.03%
Aterian, Inc. (NASDAQ:ATER) is ranked sixth on our list of 15 best short squeeze stocks to buy now. The firm operates as a tech-enabled consumer goods company and is headquartered in New York.
On August 9, investment advisory BTIG reiterated a Buy rating on Aterian, Inc. (NASDAQ:ATER) stock but lowered the price target to $10 from $36, underlining that soaring container ship prices had affected the top and bottom lines of the firm.
Out of the hedge funds being tracked by Insider Monkey, New York-based firm Hudson Bay Capital Management is a leading shareholder in Aterian, Inc. (NASDAQ:ATER) with 97,979 shares worth more than $1.4 million.
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Disclose. None. 15 Best Short Squeeze Stocks To Buy Now is originally published on Insider Monkey.
