Short squeeze stocks are once again in focus this week as the economy prepares for this month’s planned interest rate hike. Indeed, as the bears are out and about, it’s no surprise to see short squeeze candidates receive some extra attention from investors.
So, what do you need to know about these short squeeze opportunities?
Well, as a number of sectors fall out of favor with investors given the current economic climate, other companies come out of the woodwork to shine. April marked the worst month for stocks since 2020. With the Federal Reserve expected to ramp up its monetary tightening, it’s no surprise to see investors put on the breaks after a red-hot 2021. Reasonably so, as inflation is treading around 40-year highs amid rampant fuel and other supply shortages. Currently, investors estimate the Fed could raise interest rates as much as 50 basis points.
With that said, Fintel’s Short Squeeze Leaderboard represents stocks that have a strong likelihood of falling. This presents an opportunity for investors interested in shorting the companies.
Top Short Squeeze Stocks This Week
- Aterian (NASDAQ:ATER) continues to top the list of short squeeze candidates this week. With a 36.86% float and a cost to borrow shares of 124.9%, ATER stock has remained at the top of Fintel’s list for the past several weeks.
- Next up is Harbor Custom Development (NASDAQ:HCDI). The company has a 23.88% total float, which is actually slightly less than last week’s short interest. The cost to borrow shares almost doubled, however, from last week’s 37.64% to this week’s 65.89%.
- No. 3 this week is Zymeworks (NYSE:ZYME). The company has a raw short interest representing 15.81% of the total float. The company has a cost to borrow shares of 54.61%
- Lixte Biotechnology (NASDAQ:LIXT) comes in at no. 4, with a rapidly increasing short interest. The company saw an 11,000% increase in raw short interest, comprising 23.66% of the company’s total float. The company has a cost to borrow shares of 94.68%
- Finally, Veru (NASDAQ:VERU) rounds out this week’s top short squeeze candidates. The company has a short interest of 20.99% and a cost to borrow shares of 12.5%.
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.