5 Short Squeeze Stocks That May Soar, Plus 5 To Watch: ToughBuilt, Solo Brands And This Oil Stock

Zinger Key Points
  • ToughBuilt Industries tops the short squeeze leaderboard for the second straight week.
  • Oil and gas exploration company Indonesia Energy returns to the leaderboard.

Potential short squeeze plays gained steam in 2021 and continued through 2022, with new retail traders looking for the next huge move.

A short squeeze can occur when a heavily shorted stock rises in value instead of falling. Short sellers could be looking to close out their position and can face a loss if they have to buy back the shares they initially borrowed at a higher price.

A squeeze can occur when short sellers are forced into buying to cover their position, which can cause shares to move up on many occasions.

Fintel Data, which requires a subscription, provided a look at several of the top shorted stocks and how likely a short squeeze is to occur. Here’s a look at the top five short squeeze candidates for the week of Aug. 1.

ToughBuilt Industries: Home improvement and construction product company ToughBuilt Industries Inc TBLT topped the short squeeze leaderboard for the second straight week. Data showed 30.0% of the float short and a cost to borrow of 226.1%. Both figures were down from last week but came as the shares went from $3 to $9 two weeks ago.

Hour Loop: E-commerce company Hour Loop Inc HOUR moved up one position from third place to second place for this week’s short squeeze leaderboard. Data showed 21.1% of the float short and a cost to borrow of 56.8%. The figures were down from last week’s 24.4% and 58.6%, respectively.

Solo Brands: Direct-to-consumer company Solo Brands Inc DTC ranked third on the leaderboard. The maker of Solo Stove, Our, ISLE and Chubbies apparel had 21.3% of its float short and a cost to borrow of 9.4%, according to the latest report.

NextNav: GPS service provider NextNav Inc NN ranked fourth on the leaderboard with 37.2% of the float short and a cost to borrow of 21.6%.

Related Link: Most Shorted Stocks 

Indonesia Energy: Oil and gas exploration company Indonesia Energy Crop Ltd INDO returned to the leaderboard after being a frequent stock listed as a short squeeze candidate. Data showed 21.1% of the float short and a cost to borrow of 155.5%, one of the highest costs to borrow of the week. The stock trades at around $6 and has traded between $2.61 to $86.99 over the past 52 weeks with heavy trading activity related to oil stocks and short squeeze candidates.

Stocks to Watch: A look outside the top five candidates showed several other short squeeze candidates and companies that could soar up the leaderboard.

CompoSecure CMPO ranked sixth, gaining 18 places. Data showed 41.4%% of the float short and a cost to borrow of 10.9%.

Chicken Soup for the Soul Entertainment CSSE fell out of the top five from last week, ranking seventh for the week. Data showed 20.3% of the float short and a cost to borrow of 39.5%.

Beam Global BEEM rose 34 places to rank eighth for the week. The stock had 22.1% of its float short and a cost to borrow of 47.3%.

Sundial Growers Inc SNDL was one of the biggest gainers of the week, rising 2,933 positions to 14th place on the leaderboard. Data from Fintel showed 98.5% of the float short and a cost to borrow of 3.9%.

Redbox Entertainment Inc RDBX, which had previously been in the top five, jumped 10 places to 17. Data showed 63.7% of the float short and a cost to borrow of 909.0%.

Photo: Harbucks via Shutterstock

 

 

Posted In: NewsPenny StocksSmall CapTop StoriesTrading IdeasFintel DataFintel Data short squeezeShort SqueezeShort squeeze ideas
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