Breaking News
Black Friday SALE: Up to 54% off InvestingPro! Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

3 High Short-Interest Stocks With A Squeeze In The Making

By (Thomas Hughes )Stock MarketsOct 19, 2021 05:49AM ET
3 High Short-Interest Stocks With A Squeeze In The Making
By (Thomas Hughes )   |  Oct 19, 2021 05:49AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

These Are Three Of The Next Meme Stocks

Beyond Meat (NASDAQ:BYND), Ollie's Bargain Outlet (NASDAQ:OLLI), and Haverty Furniture Companies (NYSE:HVT) have very little in common other than a high and growing short interest. These companies are all fundamentally strong and supported by secular tailwinds but overshadowed by issues plaguing the market. Supply chain issues, labor market issues, freight issues, and rising inflation are playing havoc with the outlook, and the bears are taking full advantage. While there's no guarantee which stock will become the next great meme stock all three of these have a high potential to positively surprise the market and spark a short squeeze in their share prices. Until then, they're all high-quality stocks trading at low levels and attractive in our eyes.

Beyond Meat Is Going Mainstream

Beyond Meat has been struggling with competition while it works to ramp capacity, expand its reach, and improve profitability. The biggest risk has been pricing with ts competitors lowering prices putting pressure on the company to do the same, but that may soon become moot. With inflationary pressures rising throughout the economy, Beyond Meat and its competitors are going to have to respond. Meanwhile, Beyond Meat is working hard on deals with Taco Bell, PepsiCo (NASDAQ:PEP), and McDonald's (NYSE:MCD) to bring its plant-based meat products to the mass market. PepsiCo hopes to Bring Beyond meat to the multi-billion-dollar meat snack industry while McDonald's and Taco Bell obviously want to go the route of fast food. The latest news in that regard is a test of the Beyond Meat’s McPlant burger at some McDonald's US locations.

The data shows Beyond Meat is a heavily shorted stock with 23% of shares outstanding and 26% of the float currently sold short The company is slated to report earnings the first week of November and, in our opinion, will very likely smash the consensus estimate. The current consensus is expecting a double-digit sequential decrease in revenue that we just don't see coming. Shares of Beyond Meat are currently moving upward from the long-term support level of $100.

Beyond Meat Stock Chart
Beyond Meat Stock Chart

Haverty Furniture Company Is A High-Yield And deep Value

Haverty Furniture Company has seen a sustained increase in business due to the pandemic. Not only has growth returned to pre-pandemic levels but it has far exceeded them and growth is expected to accelerate again this quarter. The analysts are expecting revenue to grow about 4% sequentially but the Bears aren't so sure. The short interest of 17% is telling us the Bears expect to see supply chain and freight disruptions impact the company's business. The risk for the Bears is that, trading at 7X earnings and yielding 3%, Haverty can miss the consensus estimate and still put in a really solid quarter. Price action May slip in the wake of the report but we would expect to see it quickly bottom as bargain-hunting high yield investors scoop them up. Shares of Haverty are down 38% from their recently set high and trading above what we view as a strong support level.

HVT Stock Chart
HVT Stock Chart

Ollie's Bargain Outlet Is Worth The Price

Ollie's Bargain Outlet missed its consensus estimates with the last earnings report and that got the Bears excited. With blood in the air and the stock trading above 25X earnings, it was ripe for a correction. Now, with the stock down more than 30% from recent highs it is ripe for a reversal provided a catalyst emerges. Ollie’s is slated to report earnings the first week of December and could very well surprise the market at that time. The consensus is for revenue to hold steady from the previous quarter and we see upside risk in the numbers. Not only was the back-to-school season strong but the recent retail sales figures were strong as well. Shares of Ollie's are running with a 20% short interest and currently bouncing from an historically strong support level.

OLLI Stock Chart
OLLI Stock Chart

Original Post

3 High Short-Interest Stocks With A Squeeze In The Making

Related Articles

Anna Coulling
Where Next For Tesla? By Anna Coulling - Nov 26, 2021 1

In the pause point of celebrating Thanksgiving and a four-day weekend, I thought it would be a good time to review some stocks and have decided on the daily chart for Tesla...

3 High Short-Interest Stocks With A Squeeze In The Making

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email