“Blood bath” would be an appropriate term to use for today’s price action in the markets. This goes double for highly speculative growth stocks. However, investors looking for silver linings among today’s otherwise indiscriminate declines may notice a few stocks are doing well. Among some of the best-performing tickers today are a number of short squeeze stocks that are picking up momentum.
By and large, most large-cap short squeeze stocks remain under pressure. Whether we’re talking about GameStop (NYSE:GME) or AMC Entertainment (NYSE:AMC), the hyperbolic mania around these stocks has slowed down. However, some investors are still looking for squeeze opportunities in the market and appear to be getting bullish on a number of stocks with the fundamentals and outlook supporting the potential for a squeeze.
Short squeezes generally refer to massive short-term spikes in specific highly shorted stocks. As buying interest boosts the price of these stocks, short covering can result in an upward spiral that takes these stocks on a wild ride higher in a very short amount of time. Such has been the case with GameStop and AMC.
Accordingly, let’s look at five of the top short squeeze candidates that are on investors’ radars this week.
Top Short Squeeze Stocks for This Week
According to Fintel’s short squeeze leaderboard, these five stocks top the list right now:
- This week, ShiftPixy (NASDAQ:PIXY) has moved up to the top spot, from the second spot last week. This company’s short interest has actually declined to 27%. However, ShiftPixy’s borrow fee rate remains sky-high, at 111% as of the time of writing.
- Microbot Medical (NASDAQ:MBOT), a pre-clinical medical device company, has moved up three spots in this week’s list. This company’s short interest remains at 14%, with a cost to borrow of 16.4%.
- Next, we have Reliance Global (NASDAQ:RELI). This company’s cost to borrow has soared to 315%, with the company’s short interest sitting at 28%.
- Insignia Systems (NASDAQ:ISIG) once again makes the list, this time in fourth place. Insignia’s short interest of 58% and a whopping 470% borrow fee rate puts this stock on the list.
- Finally, we have a new entry this week. Former president Donald Trump-related Digital World Acquisitions (NASDAQ:DWAC) hits the top five list, with a borrow fee rate of 103% and 11.2% of the float shorted.
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On the date of publication, Chris MacDonald 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.
