The Next Meme Stock Sensations? 3 Ready to Join the Rally


  • Some meme stocks stand ready to capitalize on short-squeeze opportunities and enthusiasm.
  • Medical Properties Trust (MPW): With high short interest and a dividend of 11.19%, turnaround is underscored by its 60% YTD gains.
  • Cinemark Holdings (CNK): Significant institutional ownership and low P/E position it for a significant short squeeze.
  • Kohl’s Corp (KSS): It may see a resurgence based upon its improved gross margins and low P/E.
meme stocks - The Next Meme Stock Sensations? 3 Ready to Join the Rally


Despite the challenging macroeconomic landscape, investors are buying meme stocks as companies gain popularity again through social media and online communities. May was a particularly interesting month for meme maniacs following “Roaring Kitty’s” return after over three years. Gains were small compared to 2021, but this may change soon.

Earlier this week, the short-squeeze influencer Keith Gill scheduled a live stream for Friday, June 7, for the first time since 2021. The announcement sent GameStop (NYSE:GME) soaring. Then, an unconfirmed X post revealed Gill’s stake in GME stock valued at $586 million, which added to momentum. 

GameStop will report its earnings on Tuesday, June 12. If it beats estimates, which seem more important than in 2021, it could act as a positive catalyst for other meme stocks. If played with caution, this may offer meme maniacs opportunities to squeeze out profits from the market.

One way to identify which meme stocks may benefit is to look back at those impacted in 2021. However, this is a rather risky endeavor. Based on historical precedent, meme stocks with the highest short-squeeze potential have a better chance of soaring.

Let’s explore three meme stocks combining short-squeeze potential and other factors, like institutional holdings or positive news, that are ready to join the rally.

Medical Properties Trust (MPW)

Blurred hospital images, Patient bed in the hospital, Hospital cleaning, Hospital disinfection cleaning, Patient bed cleaning for emergency patients. Medical Properties Trust (MPW)
Source: venusvi /

Medical Properties Trust (NYSE:MPW) has an exceptionally high short interest, at 35% of its total shares and float. Covering all short positions would require ten days, representing a risk for short sellers in case of a positive catalyst. With a substantial number of 206 million shares shorted, the MPW stock may be the next meme stock sensation.

A few days ago, Medical Properties Trust announced a dividend yield of 11.19%. Despite being marginally lower than before, it is still nearly twice the industry average of 6.96%. This positive catalyst could present a significant upside as the stock price has gained over 60% since its low in January. While trading 77% below its all-time high, this signals a potential turnaround.

Despite being involved in Steward’s bankruptcy and rent collection issues, the company holds a niche position as a healthcare REIT that may offer stability and growth. It recently secured an $800 million loan backed by U.K. hospital properties to extend debt maturities and nourish more financial flexibility going forward. But investors may not have caught up on all that just as yet.

Cinemark (CNK)

Cinemark movie theatre location in the Louis Joliet Mall in the Chicago suburbs.
Source: LukeandKarla.Travel /

Cinema operator Cinemark Holdings (NYSE:CNK) has seen its stock price perform much better than meme stock AMC Entertainment (NYSE:AMC). CNK stock appears to have over 24.8% of its float shorted and just nine days to cover. Despite short interest dropping 6.8% in the prior month to 27 million shares, high institutional ownership of 131% of its float presents conditions for a potentially severe short squeeze.

On the plus side, the company recently reported a net income of $25 million and adjusted EBITDA of $71 million with a healthy 12.2% margin. It ended the quarter with $789 million in cash and commitments to open 36 new screens over the next two years while peers outperformed. Management’s solid execution during a challenging environment impacted by strikes could trigger a rush by short sellers to cover their positions. 

Trading at a 63% discount to its record high of $45 while putting in quite a performance 20% higher year-to-date (YTD) signals a potential turnaround. CNK’s high beta of 2.25 and low P/E ratio of 11.79x compared to the industry’s 18.74x make it one of the potentially undervalued meme stocks ready to get squeezed.

Kohl’s Corp (KSS)

Image of Kohl's logo on a Kohl's store
Source: Sundry Photography/

Kohl’s Corp (NYSE:KSS) presents a strong case for being one of the next meme stocks susceptible to a short squeeze. It has a very high short interest of 23% of its total shares and 33.7% of its float shorted. In fact, 36.36 million of its shares are shorted, and this number may increase. With approximately 125% of its float held by institutions, it’s prone to a conditional short squeeze.

Despite reporting a net loss for the quarter, the company managed to grow gross margins and reduce inventory. This may improve investor confidence and attract more buyers. Moreover, Kohl’s Corp redeemed $113 million in notes in May and plans to stay committed to returning shareholder value with a solid quarterly dividend of 8.40%.

Trading 73% below its all-time high, KSS stock has significant upside potential if sentiment improves. Its P/E ratio of 9.62x is half the industry average of 18x, presenting undervaluation and an attractive play for speculative gains. 

On the date of publication, Stavros Tousios 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 Publishing Guidelines.

Stavros Tousios, MBA, is the founder and chief analyst at Markets Untold. With expertise in FX, macros, equity analysis, and investment advisory, Stavros delivers investors strategic guidance and valuable insights.

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