The life of a bearish speculator can be dangerous and that’s part of the appeal of short-squeeze stocks: you can make life miserable for those attempting to cynically extract profits from others’ misery.
At the most elemental level, I suppose it’s like watching a lion eating a safari hunter. Perhaps it’s a bit irrational but I believe I speak for most of us: we’d root for the lion and feel that the hunter received poetic justice. It’s what the kids call fool around and find out or FAFO.
And that’s the narrative behind short-squeeze stocks. You can play the hero for these struggling enterprises that need a lifeline.
AirSculpt (AIRS)
Based in Miami Beach, Florida, AirSculpt (NASDAQ:AIRS) specializes in body contouring. Per its website, the company’s patented technologies enable surgeons to physically pluck patients’ fat by the cell, “like berries off a bush.” Even better, downtime is only 24 to 48 hours, with no scalpels or stitches involved. Further, AirScult promises immediate results.
It almost sounds too good to be true. However, analysts believe in the underlying potential. Per data from Yahoo Finance, they forecast fiscal 2024’s revenue to land at $219.33 million on average. If so, that would represent a 12% lift from last year’s sales of $195.92 million.
Looking out to the end of 2025, revenue may reach $251.49 million. That would imply sales growth of 14.7% against 2024’s projected top line. Also, the experts believe earnings per share will reach 13 cents this year and 33 cents next year.
At the moment, AIRS features a short interest of 32.29% of its float. That’s awfully high considering the short interest ratio of 48 days to cover. It’s easily one of the short-squeeze stocks to consider.
Theravance Biopharma (TBPH)
One of the smaller but more intriguing biopharmaceutical companies, Theravance Biopharma (NASDAQ:TBPH) is known for developing Yupelri, an inhalation solution indicated for the maintenance treatment of patients with chronic obstructive pulmonary disease (COPD). Notably, the solution received approval from the Food and Drug Administration. Despite TBPH’s relevance, it’s down 26% since the beginning of the year.
However, that doesn’t jive with analysts’ expectations for the company. For 2024, they believe revenue could reach $74.33 million, up 29.4% against the prior year’s tally of $57.42 million. Also, for 2025, experts project sales of $86.37 million. That would be up 16.2% from the prior year’s forecasted top line.
Notably, Fintel reports that TBPH’s short interest stands at 44.41% of its float. Also, the short interest ratio comes in at 35.49 days to cover. That’s a lot of pessimism baked in that would be difficult to unwind should a panic materialize.
Even worse for the bears, analysts peg shares as a consensus moderate buy with a $14 price target. That implies over 63% upside potential. It’s one of the short-squeeze stocks to put on your watch list.
Mondee (MOND)
Based in Austin, Texas, Mondee (NASDAQ:MOND) bills itself as the world’s leading app for travel professionals. According to its website, the company makes travel personal with the world’s most powerful artificial intelligence-powered platform. From what I understand, MOND stock is about revenge travel with a bit of machine learning on the side.
However, the market has a very dim opinion about Mondee. Since the start of the year, shares are down over 5%. And in the past 52 weeks, they suffered a decline of nearly 78%. That’s always going to attract the bears. Sure enough, MOND features a short interest of 19% and a short interest ratio of 51.25 days to cover.
Still, analysts believe that when the company reveals results for its fiscal fourth-quarter earnings on March 14, total sales will reach $216.34 million. That would be up almost 36% from last year’s tally. And 2024 revenue could be $251.55 million, up more than 16%.
Finally, analysts rate MOND a moderate buy with a $5.17 price target, implying over 109% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
