The volatility in the stock market today is unlike anything we’ve seen in recent years. Trends seem to change by the minute, and so do the preferences of traders. However, one trend that remains consistent is one involving short-squeeze stocks, which is what this article will focus on. Thanks to massive squeezes in AMC Entertainment (NYSE:AMC), GameStop (NYSE:GME), Bed Bath & Beyond (NASDAQ:BBBY), and countless others, market participants have seen firsthand the true potential when high short interest works in favor of bullish traders.
How To Find Short Squeezes
If you’re new to this trend but heard about it before, you might be wondering where to begin. To find short squeezes, you’ll want to search for stocks with higher short interest. These are typically ones that have been under consistent selling pressure, trading near lows, and have a large percentage of their float short. There are plenty of outlets to use to find short data. You can even find it by downloading free stock profile reports on PennyStocks.com (we’ll include links to stock report pages for you to use in this article).
However you find the data, understand that it can be skewed. In many cases, one outlet’s data may differ slightly. That’s why it’s good to do additional research beyond short data to determine whether certain companies will be good penny stocks to buy. Nevertheless, here’s a short list of short-squeeze stocks to watch before September.
Short Squeeze Penny Stocks To Buy [or avoid]
TDH Holdings Inc. (PETZ)
Plenty of these so-called “short squeeze stocks” explode during a single session and reset the next day. Even though this is the case, many, like TDH, do this multiple times throughout the year. In July, for instance, PETZ stock surged from around $2 to over $3.60 in 24 hours on some of the highest volumes all year. There were also one-day breakouts in June and a massive move late last year before PETZ stock dropped in January.
So what are traders looking at when it comes to this penny stock? We’ll get into the short data in the next section. Right now, we’ll look at some of the more fundamental aspects of TDH that could be grabbing the attention of traders in the stock market today.
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As the ticker symbol suggests, this is a pet product company and offers pet food in particular. One of the latest milestones sparking attention on PETZ is TDH’s acquisition of Beijing Wenxin Company. The plan for this buyout is the leverage Wenxin’s petfood related businesses. With the purchase in hand, traders have begun folding the penny stock in conversations on places like Reddit and Twitter.
This week, PETZ stock short interest came into question as the market sought out high short float percentage stocks. In this case, data from Fintel. IO put this percentage at 27.19. Other outlets like TDAmeritrade have the PETZ short float slightly lower at 20.75%. Download A Free PETZ Stock Report
Avaya Holdings (AVYA)
Is Avaya Holdings another one of the short-squeeze penny stocks to watch this week? Some would say yes if you look at the data from Fintel and TD. That’s because Fintel has the short float percentage on AVYA stock sitting at 25.95%, while TD’s is 22.08%.
Like TDH, Avaya has recently experienced an uptick of momentum in the stock market. Daily trading volumes have jumped significantly since August 19th, which might have something to do with the string of insider buying done by Theodore Walker Cheng-de King, a 10% owner of AVYA stock. As discussed in the article “4 Penny Stocks Insiders Spent Millions To Buy In August 2022,” this insider snagged a hefty position in Avaya.
It came just weeks before the company announced an expanded partnership with Sen Spirit Technology to provide Avaya OneCloud CCaaS to Hong Kong businesses. The partnership extended the reach for SST to tap government agencies, banks, telecom companies, and financial institutes to implement an end=to-end cloud communication service.
Whether it’s been short squeeze stocks or stocks with unusual options activity, FuboTV has been on plenty of watch lists this summer. This week, FUBO stock is once again on the list for its higher short interest. Fintel shows the short float percentage sitting at 25.75 while TDAmeritrade lists it at nearly 28%.
The streaming sports entertainment and betting platform technology company has faced plenty of headwinds this year. Most recently, however, the company hosted an investor day that brought mixed sentiment. While some analysts downgraded the company, most boosted their price targets for the stock. For example, Wedbush lowered its rating to Neutral but boosted its price target to $6. On the other hand, Evercore ISI reiterated an Outperform rating and increased its $5 target to $8. Roth Capital also increased its target from $4 to $5 but kept a Neutral rating. Meanwhile, Needham analysts were the most recent to weigh in. The firm has a Buy on FUBO stock and increased its $5 target to $7.
Earlier this month, FuboTV inked a partnership deal with Maximum Effort Productions. The Ryan Reynolds-founded company agreed to an exclusive first look at the unscripted TV series, Maximum Effort, which will launch on the network. Reynolds said himself, “FuboTV has taken a fresh approach to developing and delivering content in the digital age, and the entire team is passionate about thinking differently and taking chances. I genuinely can’t believe Maximum Effort gets to program our own network. I am beyond excited and grateful to Fubo.”
With these catalysts and higher short interest, FUBO stock has joined the party of short-squeeze penny stocks to watch this week. Download A Free FUBO Stock Report
List Of Penny Stocks In This Article
- TDH Holdings Inc. (NASDAQ:PETZ)
- Avaya Holdings (NYSE:AVYA)
- FuboTV (NYSE:FUBO)