5 Best Short Squeeze Stocks to Buy Now

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1. Cinemark Holdings, Inc. (NYSE:CNK)

Number of Hedge Fund Shareholders: 29

Short Interest: 25.7%

Days to Cover: 10.4

One of the Top 15 Live Entertainment Companies in the World, Cinemark Holdings, Inc. (NYSE:CNK) tops the list of best short squeeze stocks to buy now. The company not only has the highest hedge fund ownership among good short squeeze candidates, but also saw a surge in hedge fund shareholders during Q1, showcasing the newfound bullishness several funds have towards CNK.

Cinemark Holdings, Inc. (NYSE:CNK), the second-largest theater operator in the U.S., has struggled to fill its theaters in the wake of the pandemic, but did enjoy a strong Q1, as revenue rose by 33% year-over-year to $611 million and the company generated positive operating cash flow. With 110 wide-release films now tracking for 2023 releases, Cinemark is confident that its results will exceed expectations this year.

Given its positive outlook for 2023, the shorts are already on the run, as CNK shares have gained 118% this year. Longer-term, there are still serious questions about what the box office’s growth will look like, with Credit Suisse projecting post-2023 growth to be “tepid”. Cinemark Holdings, Inc. (NYSE:CNK) shares are starting to look fairly valued at this point, but with the short interest still above 25%, the stock could yet have more room to run up before a later pullback.

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