3 Most-Shorted Stocks That Are Buy-Worthy Today
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Virgin Galactic (SPCE) is readying passengers for space and shares are prepared to launch higher.
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Sunrun (RUN) investors should be seeing green again after a confirmed monthly bottom.
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II-VI (IIVI) offers longer-term bullish trends off and on the price chart.
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Today I'm going to explore some of most-shorted stocks that are worth buying into. More recently risk assets of all kinds slammed into fearful corrections on inflation, Russia's war on Ukraine and lingering Covid-19 worries. All of these turned the tables on a raging bull market in 2022.
Unsurprisingly, many of the market's most-shorted stocks were easy collateral damage.
But with the clock ticking toward the end of the first quarter, a historically robust market follow-through day signaled on March 16 changed the tone of the game. Today, a rally with the potential to turn into a new and larger bull market is in play.
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Bearing that in mind let's take a look at three heavily shorted, mid-cap stocks to buy today.
Virgin Galactic (SPCE)
Source: Charts by TradingView
Virgin Galactic (NYSE:SPCE) is the first of our mid-cap stocks to buy. It's fair to say the first thing that comes to mind in SPCE is "meme stock." And that isn't entirely without cause.
As one of the market's early, over-hyped special purpose acquisition companies, the space tourism play's shares went literally into orbit back in February 2020. Then, as the group became completely overheated in 2021, SPCE stock rocketed to triple-digit returns on two separate occasions.
But this past year's subsequent bear market in higher multiple SPAC plays took SPCE to new lows, giving it a valuation near $2.75 billion. This offers a great-looking opportunity to buy SPCE at the intersection of where growth meets value.
With Virgin Galactic set to take paying customers into the high heavens later this year, SPCE stock is revealing a lifetime double bottom supported by a bullish stochastics setup and short interest of around 25%.
If you find SPCE appealing, a May $12/$14 bull call spread is one way to safely buckle up while leveraging some of SPCE's notorious price history.
Sunrun (RUN)
Source: Charts by TradingView
If you're into greening the planet, as well as your portfolio, Sunrun (NASDAQ:RUN) stock is a hot-looking prospect.
RUN is a solar energy play with a primary focus on the residential market in the U.S. As InvestorPlace's Dave Moadel notes, Sunrun's financials aren't exactly picture perfect. And it's probably that part of the equation that has the attention of this stock's bear population (about 17%).