As the year slowly winds to a close, investors remain focused on popular short plays. Most recent coverage on this area of investing has focused on popular meme favorites, a trend that has shifted from stocks such as GameStop (NYSE:GME) and AMC Entertainment Holdings (NYSE:AMC) to newer players such as Bed, Bath & Beyond (NASDAQ:BBBY) and Avis Budget Group (NASDAQ:CAR). Identifying lesser known candidates for short squeeze stocks is likely a trickier task this year, though. While many companies have reported strong earnings lately, the holiday season is starting early this year. And experts are expecting uncertainty due to unpredictable consumer habits.
Adding to the mix is the constant chatter from digital investment communities on platforms such as Reddit and Twitter (NYSE:TWTR). These contrarian investors love to bet against Wall Street. Additionally, their community-driven mentality has propelled the rise of many aforementioned companies, helping them gain notoriety as short squeeze stocks.
As reported earlier, for any investors seeking “a more calculated approach, financial intelligence platform Fintel produces a weekly roundup of likely short squeeze plays, easily remembered as the ‘Fintel 5.'” While this week’s roundup includes some previously seen names, it also includes some that don’t receive as much discussion. The model employed by the company for scoring each ranked company ranges from zero to 100, with 100 being most likely to be shorted in comparison to its peers.
According to Fintel founder Wilton Risenhoover, “Although short squeezes are rare, when they happen they can produce incredible returns for traders who get in early. Our Short Squeeze Score is an advanced quantitative model that ranks companies on their likelihood of experiencing a squeeze, relative to their peers, so traders can be aware of potential profitable trading setups.”
With that in mind, be sure to dive into the Fintel 5 to find your best opportunities for a squeeze.
Top Short Squeeze Stocks for Week of Nov. 8
Progenity (NASDAQ:PROG). Biotech innovator Progenity has been a popular member of the Fintel 5 all season. Since mid-October, its score as risen slightly from 97.37 to 97.62, indicating that its short potential has gone up. This week’s report indicates that raw short interest in the stock has increased by an astounding near 800% since summer 2021. Although PROG had been previously maintaining an upward trajectory, it began this week by sliding 2.41%. With that in mind, it is still up more than 60% for the past month. Optimism for the stock remains high throughout options markets, but as Fintel notes, hesitation seems to be growing among retail investors.
Cassava Sciences (NASDAQ:SAVA). This stock has been garnering considerable coverage throughout recent weeks as shares have skyrocketed by staggering numbers. Although, like PROG, it’s begun this week in the red, shares are up 90% for the past week and almost 75% for the past month. The biotech company has been making progress with its new Alzheimer’s treatment drug. And despite some reports that have called it into question, most recent news for Cassava has been positive. However, it’s not hard to see how these types of numbers would make it a tempting short candidate. Fintel scores it at 92.06 and notes that short interest has increased b 260% throughout the course of 2021, moving from 2.6 million shares in February to a high of 9.4 million in October.
Big 5 Sporting Goods (NASDAQ:BGFV). Big 5 is the first of this week’s Fintel 5 to start the week trading in the green. Shares are up almost 15% for the day, but its spikes of 38% for the week and 52% are more important in this context. Its short potential has been chronicled all season, typically ranked among momentum or quick-buy stocks. With a Fintel score of 91.61, BGFV comes in just behind SAVA on this week’s rankings. Raw short interest is up just under 3% for the month but has increased by 600% since February 2021. The company has seen a significant jump in cost to borrow shares, as indicated by the borrow-fee rate climbing from 2.22% to 10.25%.
AerSale (NASDAQ:ASLE). This aircraft-component retailer may be about to see a spike in demand for its services as demand for air travel resumes and airline stocks begin to soar again. Fintel did not have as much to say about ASLE as the other names on this week’s list. The stock’s recent performance has been mixed. Although shares are up 0.81% today, they’ve declined more than 7% for the week. For the past month, though, ASLE is up by more than 28%. Its Fintel score is in keeping with its ranking, at 90.86 with raw short interest up 110% for the month. As Fintel notes, at the current level, “31.55% of the total float is shorted.”
Briacell Therapeutics (NASDAQ:BCTX). This Canada-based biotech company doesn’t garner much coverage. It’s seen a turbulent day but should close in the green, with shares up 0.2%. The past month has seen an overall good performance, with shares up more than 23% for the week and almost 42% for the month. Scoring 90.75, it comes in just below ASLE on this week’s list after slipping from previous ones. While raw short interest has fallen from 2.3 million shares to 1.9 million, it is still up considerably from where it was in summer 2021. This name also boasts the highest cost to borrow shares of any of this week’s short squeeze stocks at 39.9%.
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.