We recently published a list of 16 Best 52-Week Low Stocks To Buy Now According to Short Sellers. In this article, we are going to take a look at where TriNet Group Inc. (NYSE:TNET) stands against other best 52-week low stocks to buy now according to short sellers.
The US stock market reached new all-time highs in late February 2025, as inflation remained near the 2% target while a potential end in the Ukraine conflict sparked some optimism for the long term. Besides the creation of multi-billion-dollar demand for potential rebuilding efforts of the country, including agriculture, residential, and infrastructure, the return of American business to Ukraine and Russia is a big win for most corporations, many of which could experience up to double-digit uplift in revenue and earnings growth due to up to 200 million customer market. More importantly, this outlook is favorable for energy security, stimulates volumes, and might push energy prices lower, which in turn allows for higher profitability.
Despite the aforementioned tailwinds, the US stock market gains are still largely driven by the Magnificent 8 companies, which trade at record-high valuations and have contributed to an unprecedented rise in the stock market concentration. These companies are anticipated to have tremendous growth opportunities arising from AI and data center megatrends, on top of existing rapidly growing niches like cloud computing, media streaming, SaaS, and others. Only time will tell whether the current valuations are fair; what is certain is that many industries have been struggling since 2022, as inflationary pressures followed by high interest rates and an increasingly tough labor market dominated by layoffs and scarcity of entry-level positions have put tremendous pressure on US consumers. The high financing costs have led to diminishing Capex appetite in many industries, leading to struggle in several market segments – perfectly illustrated by underperforming consumer discretionary and industrial sectors since 2022.
On top of harsh macro conditions in the last 3 years, the new “Trump 2.0” regime and his administration can be a threat for the healthcare sector. Trump is a notorious critic of the health insurance business and might create headwinds for it through attempts of deregulation and efforts to cut the government financing of healthcare programs. As a result, the healthcare sector relative to the overall market is at record lows comparable to the 2008 depression. All in all, despite apparent optimism in the market, there are pockets of underperformance and many companies trading near their 52-week low, which may present compelling opportunities to acquire good companies at attractive prices.
Our Methodology
We screened 30-40 stocks with at least $1 billion in market cap that are near their 52-week lows. Then we sorted them by open short interest as a percentage of outstanding shares and included the top 16 with the lowest open short interest in the article. Our belief is that a low open short interest implies a lack of bearish views on the business from leading hedge funds, which represents a bullish signal from a contrarian perspective.
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 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
An HR specialist consulting with a business owner about employee benefits programs.
TriNet Group Inc. (NYSE:TNET)
Short Interest as % of Shares Outstanding: 3.65%
TriNet Group Inc. (NYSE:TNET) is a leading provider of comprehensive human resources solutions for small and medium-sized businesses. Specializing in payroll, benefits, risk management, and compliance, TNET operates as a professional employer organization, enabling clients to streamline HR functions while focusing on core business growth. The company’s technology-driven platform, combined with industry-specific expertise, helps businesses navigate complex regulatory landscapes and attract top talent with competitive benefits.
Unlike the previous companies, TriNet Group Inc. (NYSE:TNET) has underperformed for the entire calendar 2024, as the tough macro conditions and peak uncertainty in the economy have constrained the hiring activity at American businesses, which directly impacts the need for HR-related services. On top of that, TNET was hit with higher healthcare and pharmacy utilization headwinds, as well as increasing insurance cost trends. Nevertheless, the company is optimistic about the market opportunity ahead, with the election uncertainty behind them and a renewed focus on strategic priorities, including investing in its sales force, managing expenses prudently, and returning capital to shareholders while maintaining a strong balance sheet. The new US administration may prove itself as a tailwind for long-term hiring, due to efforts to bring manufacturing back to the US soil which could drive a hiring spree at some point in the future. Short sellers can’t deny the optimistic long-term landscape for TriNet Group Inc. (NYSE:TNET), as the short interest stands at only 3.65%.
Overall, TNET ranks 14th on our list of best 52-week low stocks to buy now according to short sellers. While we acknowledge the potential of TNET as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than TNET but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
