We’re more than halfway through October, and as has been predicted, volatility continues to reign supreme. The start to the current earnings season has been stronger than expected and last week, major indices posted the best week that they’d seen in months. Still, stocks faced a challenging start to the trading week thanks to inflation concerns. As investors brace for a holiday season that will likely be marked with unpredictable consumer habits, the task of identifying short squeeze stocks is a little tricky.
Digital investment communities that can be found on Reddit and Twitter are consistently touting short squeeze plays that they’d like to see pop.
For those seeking a more calculated approach, financial intelligence platform Fintel produces a weekly roundup of likely short squeeze plays, easily remembered as the “Fintel 5.” The line up this week is an interesting one, spanning some names that have been in the news for positive developments recently, while others have had less good news to report. Let’s take a look at this week’s Fintel 5.
Top Short Squeeze Stocks for Week of Oct.18
- Progenity (NASDAQ:PROG). This biotech stock continues its reign at the top of the list with a short-squeeze score of 97.37. According to Fintel, more than 22.4% of the free float is being sold short. Plus, the dark pool short volume ratio is higher than 54%. There’s no denying that short sellers are watching this stock keenly.
- Digital Brands Group (NASDAQ:DBGI). The stock enjoyed some impressive gains during September 2021 but since then, it has mostly garnered attention as a short squeeze favorite. Just under 20% of its float is sold short, so lifestyle retailer DBGI doesn’t the numbers of PROG. As Fintel notes, though, “the change in raw short interest jumped an incredible 973% in the last reporting period.” DBGI has a short squeeze score of 95.94.
- Vinco Ventures (NASDAQ:BBIG). Here we have another name that has generated quite a bit of discussion on digital investment forums lately. BBIG stock has seen quite a bit of turbulence, though last week saw it close out with some impressive gains. Roughly 24% of Vinco’s free float is being sold short, indicating that bullish retail investors may be onto something. BBIG has a short squeeze score of 95.46.
- Red Cat Holdings (NASDAQ:RCAT). The final two short squeeze stocks on this list started this week in the red and remain there as of this writing. As Fintel notes, Red Cat is fairly new to this list, though its short interest as a percentage of the float is over 30% and its dark pool short volume ratio is nearing 50%. This company operates in the red-hot drone technology sector which could help it garner meme stock status. We’ll likely be seeing it here again. RCAT has a short squeeze score of 94.37.
- Paltalk (NASDAQ:PALT). This week’s final name has also been in the news lately as the field of digital communications continues to expand. The stock has also enjoyed some impressive gains this season, which the company seems bent on leveraging through another offering of common stock. As Fintel notes, “With this offering, the total shorted float will drop even further and the likelihood of a squeeze will decline — unless short sellers continue to accumulate short positions at their current rates.” PALT has a short squeeze score of 94.07.
Check back next week for more short squeeze stocks and the next Fintel 5.
On the date of publication, Samuel O’Brient 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.