High Short Interest Stocks and Key Opportunities and Risks

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•  15 Apr 2025
 

Short interest remains a crucial indicator for traders looking to capitalize on potential short squeezes or confirm bearish sentiment. Several stocks currently have elevated short float percentages, signaling either strong skepticism from the market or a possible contrarian opportunity. Here’s a closer look at some of the most notable names in this space.

Norwegian Cruise Line ($NCLH) is in a clear downtrend, with its short interest rising 12.85%. Despite a relatively low P/E ratio of 9.23 and a beta of 2.27 indicating high volatility, the stock is struggling to gain traction, trading well below its 52-week high of $29.29.

Crocs ($CROX) has seen a decline in short interest, but the stock remains under pressure, trading at $89.93, well below its 52-week high of $165.32. With a P/E ratio of 5.66, it appears cheap, but the downtrend suggests traders remain cautious.

Commercial Metals ($CMC) has experienced an 18.06% increase in short interest, yet it is moving sideways. Despite its high P/E ratio of 69.18, the stock isn't showing clear momentum in either direction, making it a neutral play for now.

General Mills ($GIS) is another stock facing rising short interest (+14.37%), trading at $57.85. The downtrend is evident, and with a defensive profile in the consumer staples sector, it's unlikely to see a short squeeze scenario.

Builders FirstSource ($BLDR) has seen a sharp decline in short interest (-14.68%) but is still trending lower. At $118.22, it remains below its moving averages, suggesting continued weakness in the homebuilding sector.

Iron Mountain ($IRM) has a short float increase of 11.61%, and its high P/E ratio of 136.97 signals an expensive valuation. The stock is in a downtrend, which could make it vulnerable to further downside.

Zoom Video ($ZM) continues to face bearish sentiment, with short interest falling 14.29%, but the stock remains in a downtrend. At $72.40, it's well off its highs, and given its 22.58 P/E ratio, it's not particularly cheap.

Hanesbrands ($HBI) is deep in a downtrend, with a negative EPS (-0.28) and a declining share price. Short interest has fallen 15.47%, but at $4.44, it's a high-risk, low-reward play for now.

Chewy ($CHWY) has seen a modest 3.7% increase in short interest and is moving sideways. However, with an RSI of 56.41 and a recent gain of 2.22%, it may be showing early signs of a potential reversal.

Cigna ($CI) and Elevance Health ($ELV) are both in sideways trends with decreasing short interest, making them less attractive for short squeeze potential. However, ELV is in an uptrend, which could offer a stronger long-term play.

Fastenal ($FAST) is one of the few stocks in an uptrend, with a P/E ratio of 40.73. It has seen a 3.28% increase in short interest, but its technical strength suggests it could continue higher.

Intuit ($INTU) is also in an uptrend, though just barely. With a P/E of 55.52 and short interest dropping 16.37%, it may be less attractive as a short squeeze candidate but remains a solid long-term hold.

Cava Group ($CAVA) has seen a 16.91% rise in short interest, but its trend remains sideways. With a high P/E of 80.17, it’s trading at a premium, making it susceptible to volatility.

Intuitive Machines ($LUNR) is in a downtrend, with a massive EPS loss of -4.63 and a high beta of 1.33. While speculative traders might be interested, the fundamentals are weak.

Curtiss-Wright ($CW) is trending sideways, and short interest has declined 13.7%. With a P/E of 30.4, it's not a strong short squeeze candidate.

Bottom Line: Among the stocks analyzed, Chewy ($CHWY) stands out as the most attractive near-term opportunity. It has a rising RSI, a recent price increase, and a relatively high short float, making it a candidate for a potential breakout. Meanwhile, Fastenal ($FAST) is the only stock in a confirmed uptrend, making it a safer bet for momentum traders.