- Data provider Fintel has identified five heavily shorted stocks as candidates for a short squeeze.
- The list includes the stocks Marin Software and Exela Technologies, both of which have recently been labeled meme stocks.
- Marin is regarded by Fintel as the most likley stock on the list to experience a short squeeze this week.
- See more stories on Insider’s business page.
A risk-off mood entered the wider stock market on Monday as investors weighed the impact of COVID-19 variants on the global economic recovery. But conditions are lining up for some select stocks to be pushed higher this week via short squeeze, according to a report from the data provider Fintel.
In a weekly report released Monday, Fintel identified five heavily shorted stocks that appear ripe for a short squeeze, especially amid recent surges in trader interest.
The short squeezing of so-called meme stocks has played out multiple times in 2021 as day traders on social-media sites like Reddit and TikTok band together to buy the same name. That, in turn, puts pressure on short sellers to close positions by purchasing shares, which pushes a stock even higher in the process.
The two highest-profile examples were GameStop and AMC Entertainment, both of which skyrocketed as retail investors led a buying frenzy and made millions at the expense of hedge funds, which are often responsible for much of the shorting activity.
A company generally reaches meme-stock status once there’s enough chatter on forums like Reddit’s WallStreetBets and Stocktwits.
Detailed below are Fintel’s five picks for near-term short-squeeze candidates for the week of July 18, ranked by the firm’s proprietary “Short Squeeze Score,” for which 100 reflects maximum potential for a squeeze.