This year saw many short squeezes in the stock market, the most notable being the GameStop (NYSE:GME) short squeeze at the beginning of the year. Possessing high short interest, the shares of Avis Budget Group (NASDAQ:CAR) and Bed Bath & Beyond (BBBY) rallied more than 60% in price last week. So, we think it could be worth adding these stocks to one’s watchlist. Read on.A short squeeze is a condition in which a stock possessing high short interest rallies in price unexpectedly over a short period. Essentially, a short squeeze is triggered by excessive bets against short-sellers.
This year has seen many short squeezes, the most notable among them being the notorious GameStop Corporation (GME) short squeeze earlier this year. However, GME’s rally was short-lived owing to its bleak fundamentals.
Avis Budget Group, Inc. (CAR) and Bed Bath & Beyond Inc. (BBBY) currently possess high short interest, and it appears that retail traders have started squeezing the short-sellers because these two stocks rallied more than 60% in price last week. Therefore, we think it could be worth adding these stocks to your watchlist.