Today, a number of sectors are experiencing intriguing price action. Crypto is crashing, the Nasdaq and a range of growth stocks are up, while the Dow and S&P 500 are both down significantly. Today’s divergence across various asset classes is also being seen in short squeeze stocks. These stocks are among the group of potential winners from continued retail buying.
According to Fintel’s list of top short squeeze candidates, there’s a lot to like about the following five companies:
- ATIF Holdings (NASDAQ:ATIF)
- Support.com (NASDAQ:SPRT)
- Lightning eMotors (NYSE:ZEV)
- Bit Mining (NYSE:BTCM)
- Vinco Ventures (NASDAQ:BBIG)
These are companies with higher-than-average short interest and relatively high borrow-fee rates. In other words, it costs short-sellers a lot of money to hold onto short positions in these stocks. Should they see a short-term spike higher, short-sellers may be forced to cover their positions. Since covering a short position means buying shares, this creates the potential for a massive spike. Such a sequence of events is commonly known as a short squeeze.
However, let’s dive into how each of these stocks have moved today and why experts believe these stocks could pop.
5 Short Squeeze Stocks Experts Think Could Win
From Fintel’s list, ATIF is the only winner at the moment. This stock currently takes first place on the lists of short squeeze hopefuls, so it appears investors are laser-focused on picking one winner today.
The other four stocks made Fintel’s list of top short squeeze opportunities last week. However, each of these stocks are down at the time of writing, to varying degrees. It appears after last week’s impressive run in most of these stocks, the market is cooling off today somewhat. Given how crypto has performed, retail investors don’t seem so giddy today.
That said, these stocks all appear to have borrow fee rates of more than 50%, with significant levels of short interest. These are companies that do indeed have the potential to squeeze. Whether today’s price action is temporary remains to be seen. However, investors may want to put these stocks on the watch list, at least for this week.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.