TOST - 2 Highly Shorted Growth Stocks That Could Rocket
2024-02-10 05:05:00 ET
Every growth investor is looking for those diamonds in the rough, but one way to spot future winners is to look for growing companies with a degree of skepticism on Wall Street.
Shares of high-growth companies with above-average short interest (the percentage of a company's tradable shares sold short) can sometimes point to an undervalued growth stock on the verge of rocketing higher. This is what's known as a short squeeze . It's when investors who have bet against the stock are forced to buy back shares they sold short to exit their positions.
Toast (NYSE: TOST) and Dutch Bros (NYSE: BROS) are two fast-growing businesses that have high short interest right now. Let's look at what is driving the negative sentiment and why these companies could prove the doubters wrong.
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2 Highly Shorted Growth Stocks That Could Rocket