5 Stocks About To Short Squeeze As Market Rebounds

The article identifies five stocks – Abercrombie & Fitch (ANF), Applied Digital (APLD), Airship AI Holdings (AISP), NuScale Power (SMR), and Reservoir Media (RSVR) – as potential short squeeze candidates based on high short interest, strong Benzinga Edge Growth Scores, and upcoming catalysts such as earnings reports or technical breakouts; Airship AI Holdings (AISP) has the highest short interest at over 71%, while NuScale Power (SMR) has benefited from increased interest in nuclear power and a recent earnings beat, leading to a 37% gain in the last five sessions.

Analysis

The article identifies five U.S. equities—Abercrombie & Fitch (ANF), Applied Digital (APLD), Airship AI Holdings (AISP), NuScale Power (SMR), and Reservoir Media (RSVR)—as candidates for potential short squeezes, based on criteria including Benzinga Edge Growth Scores consistently above 96, short interest exceeding 15% (with AISP's notably over 71%), and proximate catalysts such as earnings or technical breakouts. This assessment is framed within a market environment recovering from April's tariff-related uncertainties. Abercrombie & Fitch (ANF), with 20.93% short interest, is highlighted for potential benefits from tariff reductions and bullish technical signals like its 14-day EMA crossing the 21-day EMA, ahead of its May 28 earnings; the stock trades at 7.5 times earnings despite a year-to-date decline exceeding 40%. Applied Digital (APLD), an AI infrastructure firm with 30.54% short interest, displays similar positive EMA crossover patterns and has analyst price targets suggesting over 55% upside, though it has yet to achieve profitability. Airship AI Holdings (AISP) presents the most extreme short interest at 71.66%; while a recent 25% revenue surprise for its May 15 earnings and trading above key simple moving averages are positive, the article implies a more modest outcome than a GameStop-style event. NuScale Power (SMR), carrying 18.98% short interest, has already demonstrated significant momentum with a 37% stock increase in the last five sessions following a substantial earnings beat on May 12 (289% revenue surprise) and benefits from the growing interest in nuclear power for AI data centers, with its stock breaking above its 50-day and 200-day SMAs. Reservoir Media (RSVR), with 18.09% short interest, is a small-cap firm whose stock is showing early bullish technicals, trading above key EMAs ahead of its May 28 earnings, and has a B. Riley Securities price target indicating nearly 70% potential upside. The overall sentiment of the source material is positive but speculative, underscoring both the high-reward and high-risk nature of these opportunities.

Key Decisions for Investors

• Investors should approach these identified short squeeze candidates with significant caution due to their speculative nature and inherent volatility, carefully considering appropriate position sizing.
• Closely monitor upcoming earnings reports, particularly for Abercrombie & Fitch (ANF) and Reservoir Media (RSVR) on May 28th, as these are key potential catalysts, while also noting the recent positive earnings impact on Airship AI (AISP) and NuScale Power (SMR).
• Meticulously track the highlighted technical indicators, such as EMA crossovers (ANF, APLD, RSVR) and SMA breakouts (AISP, SMR), for signals related to the initiation or sustainability of potential squeezes, as these can be critical for timing decisions.
• Differentiate risk profiles among the candidates; for instance, NuScale Power's position is supported by strong sector tailwinds and recent fundamental outperformance, whereas Airship AI's extremely high short interest signals both heightened risk and potentially greater reward from a squeeze.