This morning, June’s CPI data revealed red hot inflation. Analysts already suspected it would be high but didn’t seem to anticipate a read-out of more than 9%. While the stock market went down, several penny stocks began gaining momentum, and we’ll discuss this in more detail in today’s article.
CPI Data & Red Hot Inflation
What is CPI? CPI stands for Consumer Price Index. According to the U.S. Bureau of Labor Statistics, the Consumer Price Index measures “the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Indexes are available for the U.S. and various geographic areas. Average price data for select utility, automotive fuel, and food items are also available.”
Wednesday’s 9.1% readout showed the CPI for all urban consumers jumped 1.3% in June after rising 1% in May. According to the report, the increase was “broad-based,” and gasoline, shelter, and food were the most significant contributors. Several data points recorded some of the largest jumps in decades.
The gasoline index, for example, increased 59.9% over the span. This was the most significant 12-month increase in that index since March 1980. The index for electricity rose 13.7% and was the largest 12-month increase since the period ending April 2006. The rent index saw its highest increase since April 1986 and motor vehicle maintenance and repair climbed by its highest percentage since September of 1974.
Best Penny Stocks To Buy?
Despite the initial bearish sentiment, some call this peak inflation. This will undoubtedly be seen when July’s results are reported next month. But if these speculators are correct, then markets could react favorably. Some of the most beaten-down names could be back in focus, and we look at four penny stocks with higher short interest climbing early in the stock market today.
- HTG Molecular Diagnostics Inc. (NASDAQ: HTGM)
- Blue Apron Holdings (NYSE: APRN)
- Evofem Biosciences (NASDAQ: EVFM)
- Tellurian Inc. (NYSEAMERICAN: TELL)
HTG Molecular Diagnostics Inc. (NASDAQ: HTGM)
HTGM stock has been on the list of penny stocks to watch for the last few weeks. The life science company focuses on developing precision medicine using its transcriptome-wide profiling technology.
In our article Best Penny Stocks For July 2022? 5 To Watch Right Now, we discussed HTG’s presentation circuit, helping it gain momentum. The company posted abstracts showcasing its HTG EdgeSeq diagnostic technology and presented a keynote featuring one of its customers at the MarketsandMarkets Biomarker and Companion Diagnostics Conference.
This week HTGM stock came back into focus after the US Patent & Trademark Office posted an Issue Notification and Determination of Patent Term Adjustment. HTG Molecular Diagnostics will be granted US patent number 11,384,399 tomorrow titled “METHODS FOR SUBTYPING DIFFUSE LARGE B-CELL LYMPHOMA (AND USING THE RESULTS FOR DIAGNOSIS, PROGNOSIS, AND THERAPY SELECTION).”
With this, the market has begun paying some attention.
Is HTGM Stock A Short Squeeze Candidate?
So is HTGM stock primed for a short squeeze? I’ll let you be the judge on that one based on the following data. According to Fintel.IO, the short float percentage for HTGM stock is 45.13%
Blue Apron Holdings (NYSE: APRN)
The meal kit stock, Blue Apron, is no stranger to extensive breakouts in the stock market. Today shares rose roughly 1% as the broader markets fell. The company launched new seasonal meal kits in June and presented at the IDEAS Investor Conference.
Since then, however, not much has come from the company regarding events or updates. But the company’s float of less than 20 million and mounting short interest seem to have made a technical case for some traders.
Is APRN Stock A Short Squeeze Candidate?
Will APRN stock squeeze? That’s something yet to be seen. However, data from Fintel shows that the current short float on APRN stock is north of 33%.
Evofem Biosciences (NASDAQ: EVFM)
The concern over Roe v Wade and the future of women’s health has come into focus this quarter. Companies providing contraception or related services gained a bright spotlight as a result. Evofem makes Phexxi an on-demand method of birth control for women. Results reported recently from a post hoc analysis of the registrations Phase 3 AMPOWER trial evaluating Phexxi’s ability to prevent pregnancy demonstrated strong results. Phexxi prevented 99% of pregnancies in the study.
In addition, an article published in the Journal of Therapeutic Advances in Reproductive Health has brought a bit more attention to the company’s platform. The article defined and reconfirmed the mechanism of action of Phexxi. “With the current political climate causing patients and physicians to readdress access to contraception, the publication of this article is very timely,” said Dr. Todd Chappell, lead author of the article and practicing obstetrician and gynecologist.
Is EVFM Stock A Short Squeeze Candidate?
If you look at data from both TD Ameritrade and Fintel, the short float percentage on EVFM stock isn’t as high as others on this list of penny stocks. However, it isn’t a low figure either. TD shows EVFM stock’s short float sitting just under 15%. Meanwhile, Fintel data pegs this nearly 10x higher at 144%. With such a wide range of data, it will be interesting to see how the market responds.
Tellurian Inc. (NYSEAMERICAN: TELL)
Energy stocks are back in focus thanks to the latest round of CPI data. While oil stocks caught the first spike of momentum early in the Wednesday session, natural gas stocks have stepped up during the mid-morning. Tellurian Inc. has been one of the top liquified natural gas penny stocks to watch this year. The company has focused on advancing its LNG program, including its suite of projects.
This week Tellurian reported a new acquisition in the Haynesville Shale. It entered into a purchase agreement for natural gas assets from EnSight IV Energy Partners and EnSight Haynesville Partners for $125 million. With 44 producing wells and asset-level projected 2023 EBITDA of $90-$120 million, the news struck a chord with traders in the stock market today.
Is TELL Stock A Short Squeeze Candidate?
With bear market conditions in some of the energy stocks, the topic of oil and gas stock short squeezes has come up. Is TELL stock due for a squeeze? I’ll let you figure that one out. But here’s what the data shows: Fintel TELL short float percentage is 20.61%, and TD short float percentage shows 15.61%.
Short Squeeze Penny Stocks To Watch
Research is important whether you’re making a list of penny stocks to watch or ready to buy now. Short squeeze stocks have plenty of risks, and volatility is one of these risks. If any of these are on your watch list because you’re looking for short squeeze stocks, ensure you’ve got a good idea of how to trade high volatility in the market.