The odds that former President Donald Trump will win the 2024 election are rising, and more stocks have joined the market’s rally. That’s not a coincidence, Jacob Sonenshine writes in this week’s edition of Barron’s. Small-cap stocks that have experienced upward revisions to 2024 earnings since the start of the year while also being heavily shorted could outperform. That’s because a little bit of good news could cause those betting against the stock to cover their shares, creating a short squeeze. Stocks that make the list include Construction Partners (ROAD), Sterling Infrastructure (STRL), ServisFirst Bancshares (SFBS), Alpha Metallurgical Resources (AMR), and Cabot (CBT). All five have short interest between their 73rd and 100th percentiles since 2022 and have seen 2024 earnings estimates rise by 3% to 15% since the start of the year, the author says, adding that Sylvamo (SLVM) also looks particularly interesting.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on CBT:
Questions or Comments about the article? Write to editor@tipranks.com