2 Highly Shorted Growth Stocks That Could Rocket
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.
Source Fool.com
