Meme stock mania has returned, with investors flocking to platforms like Robinhood and Reddit’s r/wallstreetbets in search of the next big thing. The frenzy is centered around companies with high short interest and undervalued share prices. Here are three stocks that could be on the verge of a breakout: Airsculpt Technologies (AIRS), Children’s Place (PLCE), and Zenas Biopharma (ZBIO).
To identify these meme stocks, CNBC used a stock screener to find companies with short interest above 30%, market caps between $50 million and $2 billion, and share prices below $20. Airsculpt Technologies leads the list with a 53.1% short interest and a market cap of $388.5 million.
Airsculpt’s shares have risen 13.9% year-to-date, driven by its proprietary body contouring procedures. However, the company has consistently reported poor results, and its stock fell 10% last week after announcing the retirement of its CFO. Despite this, analysts still predict a “Hold” rating for the stock.
Children’s Place (PLCE) is another company with high short interest, at 50.2%. The retailer’s shares have plummeted 56.6% year-to-date, but some analysts see potential in its brand portfolio and online channels.
Last but not least, Zenas Biopharma has seen its share price rise 88.2% on a YTD basis, driven by its immunology-based therapies. The company has received a “Strong Buy” rating from Wall Street analysts, who predict an upside of about 109% from current levels.
While these stocks are not without risks, they could be worth keeping an eye on for momentum chasers. As always, it’s essential to do your own research and consider multiple perspectives before making any investment decisions.
Source: https://www.barchart.com/story/news/33838390/3-highly-shorted-stocks-that-could-be-the-next-wall-street-sensations