Bulletin
Investor Alert

May 31, 2022, 1:42 p.m. EDT

Best Penny Stocks? 5 Short Squeeze Stocks To Watch This Week

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    PPG Industries Inc. (PPG)

or Cancel Already have a watchlist? Log In

May 31, 2022 (Penny Stocks via COMTEX) -- Penny stocks are known for their volatility and potential to skyrocket at a moment's notice. They're also known to break down just as quickly. But if you're a risk-on trader, this volatility is what you're looking for the make money trading in the stock market.

Today we look at a unique list of penny stocks where price fluctuations can be even more extreme. I'm talking about stocks with higher short interest. These are the companies that Wall Street has taken big bets against. Under the right conditions, however, bearish bets can lead to bullish explosions, as recent history suggests.

The record moves that AMC Entertainment and GameStop made early in the pandemic are proof that short squeezes can happen to astronomical proportions. Since the stock market is down in 2022, some traders think that a short squeeze paired with a market rally could be a perfect storm for bullish opportunities. Here's a list of short interest stocks to watch this week.

Penny Stocks To Watch

Tonix Pharmaceuticals Holding Corp. (TNXP)

It isn't always about finding beaten-down penny stocks when it comes to short squeeze stocks. However, there's a good chance that companies trading near lows have bearish bets on them. Tonix Pharmaceuticals fits the mold as shares have imploded over the last year. But after hitting fresh lows a few weeks ago, TNXP stock has managed to rebound.

[Read more] Penny Stocks To Buy Now? 4 To Watch This Week

Significant volume has also accompanied the move with some of the highest levels in its public history. Global health concerns stemming from the monkeypox virus have placed attention on companies with potential exposure to a vaccine or treatment. In our article " Penny Stocks To Buy Now? Hot Monkeypox Stocks To Watch Today ," we discussed Tonix along with a few other names.

The company's infectious disease pipeline consists of a vaccine in development to prevent smallpox and monkeypox called TNX-801. TNXP stock has been put on the radar, with more cases popping up globally.

We looked at short data from Fintel.IO and TD Ameritrade today. As of this article, both platforms show the short interest for TNXP stock sitting above 250%. This is the penny stock with the highest short interest on this list based on data from these outlets.

Vroom Inc. (VRM)

Shares of Vroom Inc., as well as other automotive retail stocks, have popped recently. In Vroom's case, the penny stock has bounced back 40 cents from its recent 52-week lows. Even though it's small in dollar value, the move equates to roughly 37%. This, of course, is one of the high points of penny stocks. Even small moves can mean big percentage changes.

VRM stock is in focus after beating Q1 earnings. The company reported a loss per share of 71 cents, better than Wall Street's expected loss per share of over $1. In addition, Vroom reported sales of more than $900 million for the quarter, exceeding estimates of $878.13 million.

VRM could be another short interest stock to watch. As of this article, Fintel data shows a short float percentage of 35.63%. Meanwhile, TD Ameritrade has a figure slightly lower at 32.11%.

Eos Energy Enterprises Inc. (EOSE)

Energy penny stocks have been a favorite amid the global supply disruption. However, Eos isn't a typical oil and gas stock. The company focuses on energy storage systems based on sustainable zinc. Its Znyth zinc battery was made to outperform conventional lithium-ion technology.

Since sustainable energy stocks haven't been in the biggest favor this year, shares of many companies, including EOSE stock, are down for the year. Throw in some missed quarterly expectations, and it makes sense that the penny stock hit new 52-week lows in May.

Nevertheless, Eos could be in focus among those looking for short squeeze stocks . Fintel and TD Ameritrade show the EOSE stock short float between 28.21% and 29.66%.

1 2
This Story has 0 Comments
Be the first to comment

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.