On the one hand, the quantitative model sees it as a good investment, and on the other hand, many investors are betting that their price will fall by increasing their short positions. This situation may cause large fluctuations in stock prices.
The Zhitong Finance App has learned that as investors finish trading in 2023 and prepare for 2024, a list of stocks with both “The Highest Quant Ratings (The Highest Quant Ratings)” and “An Elevated Level of Short Interest (An Elevated Level of Short Interest)” appeared. However, this could mean that these stocks are divided in the market: on the one hand, quantitative models see them as good investments, and on the other hand, many investors are betting that their prices will fall by increasing their short positions. This situation may cause large fluctuations in stock prices.
The stocks listed below all received a “Buy” or “Strong Buy” quantitative rating from “Seeking Alpha,” and interest on short positions exceeds 25% of total circulation. Eventually, one side of the market (quantitative investors or short investors) will be proven right, which will cause a significant shift in stock prices. If the quantitative investors are right, the stock price may rise; if the short investors are right, the share price may fall. This “rupture” will break the current uncertainty and provide a clearer direction for the future trend of the stock.
Carvana (CVNA.US): Carvana's stock price has risen 3% in the past week and is up 1082% year to date. The auto retailer received strong quantitative factor ratings in terms of profit correction and momentum. Carvana's share price-to-sales ratio is below the automotive retail industry average. Short interest accounts for 38.7% of total circulation.
Global Inspection (WRLD.US): Global Acceptance's stock price has fallen 2% in the past week and has risen 103% year to date. The consumer finance company received strong quantitative factor ratings for growth and momentum. Wall Street analysts are pessimistic about global acceptance. Short interest accounts for 33.6% of total circulation.
Twist Bioscience Corporation (TWST.US): Twist Bioscience shares have risen 6% in the past week and 54% year to date. The biotech company received a strong quantifier rating for profit revisions. The stock attracted bullish ratings from most Wall Street analysts. Short interest accounts for 29.0% of total circulation.
Tango Therapeutics (TNGX.US): Tango Therapeutics' shares have dropped 5% in the past week and are up 37% year to date. The biotech company received strong quantitative factor ratings in terms of profit correction and momentum. All six Wall Street companies that rated Tango Therapeutics were bullish. Short interest accounts for 27.1% of total circulation.
Sovo Brands (SOVO.US): Shares of Sovo Brands have risen 1% in the past week and have risen 60% since 2023. The packaged food company received strong quantitative factor ratings for growth, earnings per share correction, and momentum. Some traders are betting on whether the company's deal with Jinbao Soup (CPB.US) will be completed. Short interest accounts for 27.0% of total circulation.
Nkarta (NKTX.US): Nkarta's stock price surged 45% in the past week, but is still down 23% year to date. The clinical-stage biopharmaceutical company received strong quantitative factor ratings for valuation, growth, and momentum. Wall Street analysts are also bullish on Nkarta. Short interest accounts for 26.9% of total circulation.
ImmunityBio (IBRX.US): ImmunityBio's stock rose 1.5% in the past week to reduce the 6% year-to-date loss. The clinical-stage biotech company received strong quantitative factor ratings for growth, earnings per share correction, and momentum. ImmunityBio's projected growth rate is the strongest on the list. Short interest accounts for 26.4% of total circulation. Of particular note is that insiders own more than 44% of the total shares, which could increase volatility.
Oric Pharmaceuticals (ORIC.US): Oric Pharmaceuticals' shares have risen 2.3% in the past week and 48% year to date. The clinical-stage biopharmaceutical company received a strong quantifier rating for momentum. Wall Street analysts are also bullish on Oric Pharmaceuticals. Short interest accounts for 26.3% of total circulation.
Applied Optoelectronics (AAOI.US): Applied Optoelectronics's shares fell 6.3% in the past week, but soared 1026% year to date. The manufacturer of fiber networking products received strong quantitative factor ratings for growth, earnings per share correction, and momentum. “Seeking Alpha” analysts warned about the company's valuation and profit prospects. Short interest accounts for 25.8% of total circulation.
CNK.US: Cinemark's stock price fell 6.2% in the past week, but it has reduced the +60% increase since the beginning of the year. The movie theater stock received strong quantitative factor ratings in terms of earnings revisions and momentum per share. Wall Street and “Seeking Alpha” analysts are bullish on Himanke Studios, although the latest predictions for the 2024 box office are slightly lacking. Short interest accounts for 25.5% of total circulation.