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5 High Short Interest Stocks Getting Squeezed With Upside To Go

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Short Squeeze Stock Market

Key Points

  • High short interest is fueling rallies in these stocks with upside to go. 
  • Analysts support these markets with growth or a pivot to growth expected in 2024. 
  • All provide value, yield, or both. 
  • 5 stocks we like better than Super Micro Computer

High short interest is a recipe for sharp stock price movements, and when the shorts are getting squeezed, the movements can be the sharpest. The stocks on this list are not only high-short interest stocks with upward price pressure; they are among the most shorted stocks listed on Marketbeat’s platform, offer some value, have positive market sentiment, and a forecast for growth. In many cases, the squeeze is already on; in all cases, there is still an upside for investors. 

Cummins Short-Sellers Are Selling Into The Rally

Cummins NYSE: CMI short-sellers are selling into the rally despite the stock setting a new high on solid results and outlook. The stock still provides value at 16X this year’s earnings, and although a small earnings contraction is expected for F2024, a pivot back to growth is expected with the turn of the next fiscal year. The dividend is rock solid at 2.28%, growing, and reliable. 

The latest increase is the 18th consecutive and sets the company up to become a Dividend Aristocrat by the decade's end. That’s a tailwind for price action to aid the share price for the next six years. Analysts rate the stock at Hold but lead the market higher with revisions. The consensus lags the price action by 7%, but the freshest targets since the last report are above it. The stock price may pull back from its current levels, but the dip, if it comes, would be an attractive entry point.

CMI stock chart

Canadian Natural Resources Could Double In Price 

Short-sellers are selling into the Canadian Natural Resources NYSE: CNQ rally despite the technical outlook, which suggests the stock price could double again from current levels. The market broke out of a bullish triangle to the upside following a $60 rally, which suggests a $60 to 200% upward movement. The market is supported by the expectation for flattish results this year, a potentially cautious outlook, and a pivot back to growth next year. 

Because the stock trades at 12X next year’s earnings and pays 3.5% in yield, it is a value and high-yield. You might think 12X is fair compared to other energy stocks, but the entire complex is undervalued based on the potential of forward earnings. Analysts rate this stock as a Hold and see it advancing by 6% at the range’s low end, 16% at the consensus, and the consensus is trending higher.  

CNQ stock price chart

Super Micro Computer Inc. Rockets Higher on AI Boost

Super Micro Computer NASDAQ: SMCI is rocketing higher on a boost from AI. The boost has the value surging to above 40% and the short-interest high, but the value is based on this year’s earnings. The benefit from AI will be seen fully next year when the outlook has valuation falling to 30X and back in line with leading tech plays. The consensus price target lags the market, but analysts are bullish. They rate the stock as a Moderate Buy and have raised their price targets. The freshest targets imply more than 1000 basis points of upside at the range’s low end; the new high target suggests another 50% upside. 

SMCI stock chart

T-Mobile US Short-Sellers Are Closing Positions

T-Mobile's NASDAQ: TMUS short interest runs about 5% but was higher. The latest report shows short interest is falling, likely lower now. The company expects growth this year and next, and the bar is set low for this 5-G winner. Analysts rate the stock as a Buy and are leading the market higher with revisions. The consensus assumes 15% at the midpoint, the low end of the range supports the current action, and the consensus is rising. 

TMUS stock chart

General Motors Signals a Market Reversal

General Motors NYSE: GM short interest is falling but still high enough at the last report for short-covering to aid upward movement in the price action. Technically, the stock price recently broke above critical resistance, signaling a market reversal that should lead it higher. Analysts rate General Motors as a Moderate Buy with a 15% upside at the consensus, and revisions support the market. 

GM stock chart

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Should you invest $1,000 in Super Micro Computer right now?

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While Super Micro Computer currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
General Motors (GM)
4.8202 of 5 stars
$42.63-1.1%1.13%5.21Moderate Buy$54.65
Canadian Natural Resources (CNQ)
4.7775 of 5 stars
$75.13-3.0%4.11%14.97Hold$94.00
T-Mobile US (TMUS)
4.9326 of 5 stars
$168.88+0.9%1.54%22.98Buy$186.33
Canadian Natural Resources (CNQ)
3.5381 of 5 stars
C$103.03-2.5%3.88%15.11Moderate BuyC$111.47
Cummins (CMI)
4.5946 of 5 stars
$274.34-1.4%2.45%20.08Hold$284.36
Super Micro Computer (SMCI)
4.841 of 5 stars
$839.72-4.0%N/A47.07Moderate Buy$954.38
Compare These Stocks  Add These Stocks to My Watchlist 

Thomas Hughes

About Thomas Hughes

  • tmhughes.writeon@gmail.com

Contributing Author

Technical and Fundamental Analysis

Experience

Thomas Hughes has been a contributing writer for MarketBeat since 2019.

Areas of Expertise

Technical analysis, the S&P 500; retail, consumer, consumer staples, dividends, high-yield, small caps, technology, economic data, oil, cryptocurrencies

Education

Associate of Arts in Culinary Technology

Past Experience

Market watcher, trader and investor for numerous websites. Founded Passive Market Intelligence LLC to provide market research insights. 


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