Steer clear of these investment options:
Investors should exercise caution with these US stocks, as they have high short ratios, indicating that many professionals are betting on falling prices. These stocks are among the most shorted within the S&P 500 Index, which includes the 500 largest listed US companies.
As of January 31, 2022, Enphase Energy remains the most shorted stock, with 17.16% of its shares sold short. This percentage increased from 15.51% in December. Analysts remain skeptical about this stock, with most recommending holding and an average price target of $77 USD, implying a further downside potential of over 15%.
Super Micro Computer experienced a significant increase in short interest, with 15.65% of its shares shorted as of January 31. The short interest in this stock increased by 16% compared to the previous month, and the average price target of $36.5 USD signals a downside potential of 40%.
The list also includes other stocks with high short ratios, and the potential for losses may threaten these as well. Investors should analyze whether an investment in these stocks is prudent or if it would be wiser to stay away from them.
To find similar stocks, investors should consider high short interest as a percentage of float or a high short interest ratio. Financial data platforms like Yahoo Finance, MarketBeat, or Finviz provide short interest data for stocks. Analyzing trends may help investors identify heavily shorted sectors.
As always, investors should carefully evaluate any potential investment, considering all available information, including short interest data, analyst estimates, and average price targets. A high level of short interest can indicate skepticism among professionals, which may justify a cautious approach.
In the broader context, the stock market may no longer offer easy gains, and experts are warning investors to be more cautious and thoroughly analyze any investment opportunities.
- Given the high short ratios of Enphase Energy and Super Micro Computer, investors may want to exercise caution when considering investing in these stocks, as they have a significant amount of professionals betting on falling prices.
- For those seeking similar heavily shorted stocks, financial data platforms like Yahoo Finance, MarketBeat, or Finviz can provide short interest data that may help identify sectors with high short interest. It's essential for investors to analyze these trends to make informed decisions about potential investments.
