16 Stocks That Are Short Squeeze Candidates

• The screening methodology estimates short seller returns by tracking when shorts were added over the past year and comparing entry prices to current levels to identify positions with large unrealized losses
• Notable stocks on the list include AST SpaceMobile (ASTS), Southern Copper (SCCO), and Applied Digital (APLD)
• The analysis suggests contrarian investors could profit by buying dips in these heavily shorted growth stocks that have declined but retain upside potential

Market Summary: Short Squeeze Candidates in Tech and Growth Stocks

Key Theme:

Schaeffers Research identifies 16 heavily shorted stocks with potential for short squeezes as Wall Street focuses on AI disruption, presenting contrarian opportunities for investors willing to buy the dip.

Methodology:

The screening process analyzed short interest data from the past year, estimating entry prices for short positions using two-week average prices. The analysis identifies stocks where short sellers may be facing significant losses and could be forced to cover positions. Data is current as of February 15, 2026.

Notable Companies:

• AST SpaceMobile (ASTS)
• Southern Copper (SCCO)
• Applied Digital (APLD)

These stocks represent sectors including telecommunications infrastructure, commodities, and digital infrastructure.

Market Context:

The article notes that heavily shorted growth stocks are currently "not en vogue" amid broader market concerns about AI disruption. However, this creates potential contrarian opportunities where bearish sentiment may have become excessive.

Investment Implications:

Short squeezes occur when rising stock prices force short sellers to buy shares to cover positions, creating additional upward price pressure. Stocks identified in this screen have accumulated significant short interest over the past year, with shorts potentially sitting on substantial losses based on current pricing.

Risk Considerations:

The analysis carries "quite a few assumptions" and provides "very rough estimates," suggesting investors should exercise caution and conduct additional due diligence before taking positions.

The screening approach targets heavily shorted growth and technology stocks that may have been oversold, potentially offering asymmetric risk-reward profiles for contrarian traders monitoring market sentiment shifts.