2021 has been the year of short squeezes, exemplified by huge retail bets against hedge funds' short positions. After gaining handsomely from GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC), retail investors have focused on several other short squeeze candidates seeking to benefit similarly from those names. Gogo (NASDAQ:GOGO) and Big 5 Sporting Goods (BGFV) are two such stocks. They possess a high short interest, and we think could witness a short squeeze rally this month. Read on.As the hype surrounding the popular short-squeeze candidates GameStop Corporation (GME) and AMC Entertainment Holdings, Inc. (AMC) began to fade, some new names started dominating discussions on several social media platforms. Short squeeze stocks are characterized by high short interest over a short period. Retail investors bet against institutions, typically hedge funds, with short positions in particular stocks to force a short squeeze.
Recently, some new names have begun making a buzz and could witness a short squeeze this month. Furthermore, according to some analysts and investors, the Federal Reserve’s signal that it will eventually raise interest rates is unlikely to stop the rise of meme stocks or short squeezes.
Gogo Inc . (GOGO) and Big 5 Sporting Goods Corporation (BGFV) currently have more than 30% short floats. And given these companies’ strong fundamentals, we think these stocks could take flight this month.