Markets continue hovering around record levels in the stock market today. Penny stocks, blue-chips, ETFs, and everything in between are gaining more ground as November rolls on. New trends have also begun emerging, which has helped some stocks experience above-average trading momentum. One of these trends is in “short squeeze stocks,” thanks to the growing popularity of companies like AMC Entertainment (NYSE:AMC), GameStop (NYSE:GME), and other so-called meme stocks.
The excitement stemming from stocks with high short interest has everything to do with their ability to experience extensive breakouts quickly. Putting things into perspective, the S&P 500 ETF (NYSE:SPY) is up around 25% year-to-date. By all accounts, this is an excellent return for a major index. However, stocks like AMC have broken out over 100% within a single session.
What’s more, year-to-date momentum has built so strongly that AMC stock, for example, is up more than 1,800%. The crazy thing is that it was considered a penny stock in January, trading below $5 a share. Contributing to the move was higher levels of short interest in the stock this year. Big bets against AMC and others turned into ample opportunities for buyers if a squeeze was triggered. In this sense, the bullish gamble against short sellers paid off handsomely.
Does this mean that all penny stocks with higher short interest are bound to explode to record levels? No, but it doesn’t hurt knowing a few of the fine details when it comes to putting together a list of penny stocks to watch. If you’re looking for more information on the definition of a short squeeze, you can check out some of our other articles here.
5 Penny Stocks To Watch With High Short Interest
1. Invacare Corporation (NYSE:IVC)
Invacare is one of the penny stocks we discussed late last week. No new updates have come out this week; however, that hasn’t stopped the steady climb that IVC stock has experienced over the previous few sessions. Ever since dropping at the start of November, the company’s shares have managed to claw back some of what was lost.
One of the biggest triggers for the drop was the company’s short-term outlook based on a recent earnings update. But the most significant factor came when IVC shares were booted from the S&P SmallCap 600. NetScout Systems took its place.
Invacare had some positives to consider. These are some things that I think have become a core focus for the market heading into the rest of the year. The medical equipment manufacturing company expects continued growth. Specifically, CEO Matthew Monaghan said, “Similar to the second quarter, we continue to experience strong order intake and high demand for our products, resulting in a higher-order backlog compared to pre-pandemic levels. These favorable trends give us the confidence we will achieve sequential improvement in 4Q21, finishing the year on a strong note and building momentum as we head into 2022.”
Based on data from Fintel, today, IVC stock shows a short float percentage of just over 31%.
2. Romeo Power Inc. (NYSE:RMO)
With the infrastructure bill excitement over the weekend, several industries have begun trending in the stock market today. One of these is energy, and Romeo Power has benefited so far. The company specializes in battery development for electric vehicle manufacturers. With the likes of Tesla (NASDAQ:TSLA) and other EV companies gaining a spotlight today, ancillary companies, including battery manufacturers and even charging station stocks, are gaining ground.
Next week, the company is also set to report third-quarter earnings. If RMO stock is on your watch list right now, keep November 15 in mind. Romeo’s results come after the close, with a corporate conference call to follow.
As far as RMO being one of the short squeeze penny stocks to watch, Fintel data shows a short float percentage of just under 23% as of this article. With increasing attention on EV and alternative energy stocks, RMO could be on the watch list today.
3. Electrameccanica Vehicles Corp (NASDAQ:SOLO)
Similar to Romeo Power, Electrameccanica has also gained momentum. The company is building its portfolio of electric vehicles designed for urban travel and short-term trips. Its single-driver SOLO vehicles have just begun rolling off the assembly line and out for delivery.
Earlier this month, Zongshen Industrial Group exercised 1.4 million warrants at a CAD$4 strike price, equating to CAD$5.6 million in proceeds for the company.
“We strongly believe in ElectraMeccanica’s mission, and the groundbreaking SOLO EV, with this warrant exercise, is a clear testament to our confidence in the Company’s future and the value we place on our mutual relationship.”
Zongshen Industrial Group Chairman Zuo
This week, the company attends the Stifel 2021 Midwest One-on-One Growth Conference. If SOLO stock is on your list right now, keep November 11 in mind. This is the date of the conference. Attention on EVs and renewable right now may give more reason to have some names on a watch list. In the case of SOLO’s short float percentage, Fintel data shows that sitting around 17% right now.
4. Meta Meterials Inc. (NASDAQ:MMAT)
Shares of MMAT have steadily climbed over the last few weeks. A mix of interest in renewable energy, including solar, some confusion on its name, and some actual crossover into new tech has put the company on the radar. Meta Materials has myriad technology applications. Everything from designing solar energy solutions to its more recent focus on the Metaverse, there’s a lot to look at when it comes to MMAT.
Most recently, the company took part in an online panel discussion. It was titled “AR Eyewear Engineering Challenges, and the Role Advanced Optical Materials Could Play” and included some of the foremost names in this new niche. Stanford University, Tilt Five, Facebook Reality Labs, Microsoft / Hololens, Covestro, and META, topped the list.
This week with a mix of interest in renewable energy and metaverse technology, it makes sense why MMAT stock is gaining some attention. Those who’re searching for penny stocks with higher short interest may have also come across the company. According to Fintel, MMAT’s short float percentage sits around 15.4%.
5. Senseonics Holdings Inc. (NYSE:SENS)
Finally, Senseonics Holdings rounds out this list of penny stocks. Since the end of October, it has been on our radar for stocks to watch with higher short interest. The company specializes in medical technology, specifically its Eversense platform for blood glucose monitoring in diabetes patients.
As discussed last month, Senseonics has collaborated with organizations, including University Hospitals Accountable Care Organization in Cleveland, to expand its reach. Furthermore, if the company is on your list right now, it also has an upcoming event that could be a point of interest. On November 9, Senseonics releases its Q3 financials and hosts a conference call. With solid progress this year, Q3 could be a critical period to watch and confirm if Senseonics has been able to uphold this rate of growth heading into the end of 2021.
As far as Fintel data goes, SENS stock shows a short float percentage of 26.26% as of today. With earnings coming up, will this bullish trend continue into November?
Short Squeeze Penny Stocks To Watch
As with most trends favored by retail traders, short squeeze stocks typically see rapid spikes if or when a short squeeze is triggered. Keeping this in mind, it’s critical to understand how to trade when volatility is at all-time highs. Since these breakouts can start and stop in minutes, at times, having a plan before hitting the “buy” button is key.