The third weekly decline of the S&P 500 comes with renewed interest in short squeeze stocks. Indeed, the current economic downturn has put short positions back in focus as a number of investors look to alternative revenue-generating initiatives.
It’s unclear how long the current bearish streak will last in the economy. However, given current supply-chain concerns, still red-hot inflation and near-peak Federal Reserve hawkishness, investors can’t exactly be blamed for betting on a drop.
The coming weeks and months will provide further context for the future of the market. Will prices ease? Can the Fed really offer a “soft landing” for its interest rate hikes? Will the S&P see a near-term reversal? Expect all that and more to be answered in the not-so-distant future.
With that said, the companies on this list represent the bottom of investor expectations. As such, these stocks typically operate with higher than average float, representing substantial short interests.
Top Short Squeeze Stocks for This Week
As per Fintel’s short squeeze leaderboard, these are the most prominent short squeeze candidates going into this week:
- Aterian (NASDAQ:ATER) once again tops this week’s short list. The company has a reported cost to borrow of 124.97%, a sizable increase over last week’s 109.7%. The company also has a short interest ratio or total float of 34.76%.
- Harbor Custom Development (NASDAQ:HCDI) comes in as the second short squeeze candidate this week. The company has a raw short interest of 1.75 million shares, a nearly 4% increase from last month. The company has a total float of 25.6%, with the cost to borrow shares at 37.64%
- E-commerce play Newegg (NASDAQ:NEGG) maintains its placement in the top five short squeeze opportunities this week. The company has a 31.67% total float, with a cost to borrow of 70.27%. That’s a slight increase over last week.
- Next on the list is 51job (NASDAQ:JOBS). The stock has a 16.50 total float and a cost to borrow of 72.67%.
- Finally, Clever Leaves (NASDAQ:CLVR) rounds out the list once again. The company has a short float of 16.84% and a cost to borrow of 35.86%, a surprising decrease from its 40.77% figure last month.
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On the date of publication, Shrey Dua did not hold (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.