Goldman Sachs Highlights 20 Top Short-Squeeze Opportunities For Q3 Earnings Season

Goldman Sachs identified 20 stocks with high short interest that could be primed for a short squeeze, particularly if upcoming earnings reports exceed expectations, providing opportunities for traders.

In a note shared this week, analyst John Marshall and his team saw the potential for substantial upside for this group of stocks if the current trend of short-covering continues.

What Is A Short Squeeze?

A short squeeze happens when a stock with high short interest sees a rapid price surge, forcing short sellers to buy back shares to cover their positions. This buying frenzy often propels the stock price even higher.

Short sellers bet that the price of a stock will fall, borrowing shares to sell them at the current price with the intent of repurchasing them at a lower price.

When a stock rises instead, short sellers scramble to cover their positions, accelerating the stock’s upward momentum.

Short squeezes typically occur when heavily shorted stocks ...