Thanks to huge moves in stocks like Bed Bath & Beyond (NASDAQ: BBBY), Revlon (NYSE: REV), and, of course, AMC Entertainment (NYSE: AMC) among others, short squeeze stocks are red hot. Are they the best penny stocks to buy? Depending on your time horizon and penchant for risk, short squeeze penny stocks rank high on the list of stocks to watch. Their ability to explode within an hour or a few days is unlike anything most traders have seen.
Case in point, the latest short squeeze leader, BBBY stock, has soared hundreds of percentage points not only within a few weeks but also within the last few days. Looking back at our article last month on BBBY, you’ll see that this former penny stock has exploded by over 300%. What was the major catalyst identified? First, insider buying lit the fuse, then a high short float ignited the explosive move.
Penny Stocks To Buy
Sticking with the shorty squeeze trend, today, we look at more penny stocks with higher short interest. We’ll reference data from Fintel, TD Ameritrade, and True Trading Group’s Short Data Tool. The reason for using multiple sources is to get a general idea of the short interest in these penny stocks.
- Blue Apron Holdings (NYSE: APRN)
- Kirkland’s Inc. (NASDAQ: KIRK)
- Party City Holdco Inc. (NYSE: PRTY)
- Express Inc. (NYSE: EXPR)
Blue Apron Holdings (NYSE: APRN)
Shares of Blue Apron have been on our list of short squeeze penny stocks to watch for a while. You’ll notice that, other than the technical trend, these companies cater to the retail consumer. Thanks to strong results from Walmart, Home Depot, and others, retail stocks are heating up.
Blue Apron offers meal kits and has placement in retail stores. For example, it launched a seasonal meal kit line and secured a place on Walmart.com to provide products with. But this week, it’s all about the short float. According to data from Fintel, the APRN stock short float sits around 44.8%. TD has this figure at 23.49%, and the True Trading Group short data tool shows APRN’s short at 41.19%.
Kirkland’s Inc. (NASDAQ: KIRK)
Another retailer, Kirkland’s, has experienced a steady climb over the last week. Shares have moved up from around $3 to highs of over $4.60. If KIRK stock appears familiar, that’s because it was on our list of short squeeze penny stocks to watch last week. Our article highlighted the KIRK stock short float percentage sitting between 22% and 25%. This week, the higher end of that range, according to Fintel, is up to 29%.
New investments from firms like BlackRock, Inc. have helped give attention to KIRK stock a boost in more recent weeks. A new CFO has also come into power amid a recent management shakeup. It also set August 30th as the date for its next earnings report. With earnings season in full swing, KIRK stock could be at the top of mind for some traders speculating on the bullishness in retail stocks.
In Q1, Kirkland’s miss earnings and sales estimates by a wider margin than expected. On the other hand, management mentioned that it would continue executing its test marketing campaigns. With the higher short interest and focus on retail stocks, KIRK could be on the list of penny stocks to watch this month.
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Party City Holdco Inc. (NYSE: PRTY)
Even party supply stores made the list of retail penny stocks with higher short interest. In this case, Party City isn’t the company with the highest short interest, but with a range of 9.93-12.34%, it could be on the radar.
The company is coming fresh off of second-quarter results. Party City reported sales of $527.4 million and sees its fiscal year total between $2.15 billion and $2.225 billion. Brad Weston, Chief Executive Officer of Party City, stated, “Our second quarter topline results were largely as expected as we lapped a strong Q2 last year while cost headwinds, which are predominantly transitory in nature, pressured profitability. We are seeing benefits from the transformation work we have accomplished over the last two years, which is evidenced by our strong sales results compared to pre-pandemic levels.”
PRTY stock has climbed significantly higher this week so far. It will be interesting to see if the short squeeze trend puts even more attention on the company.
Express Inc. (NYSE: EXPR)
The clothing and accessories retail company, Express is no stranger to retail trader attention. It was wrapped up in the list of meme stocks to watch during the original breakout of AMC and GME stocks. Shares have certainly retreated in price, but the daily trends are something that traders have followed closely. Furthermore, this week, the latest trend in consumer retail stocks has helped.
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Like other names on this list of penny stocks, the company delivers second-quarter results later this month. August 31st was set as the official date. EXPR stock is in focus with some higher short interest and attention from the Reddit and Fintwit crowds.
The company posted a solid first quarter. Some highlights included a 30% increase in net sales and a 31% increase in consolidated comparable sales. As far as eCommerce, Express said it realized a 21% growth in demand and is on track to achieve a goal of $1 billion in eComm demand by next year. Management also raised its full-year comp sales outlook to an increase of 8%-10%. We’ll have to see how this next round of results comes in. Regarding short data, EXPR short float percentage sits around 8.3%.
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