2 Heavily Shorted Stocks to Buy and 1 to Avoid
SoundHound and RH look like potential buys, while I'd avoid Supermicro.
Overview
When a stock is heavily shorted, it can be a warning sign for investors. However, if these stocks defy expectations, short covering can be the launching pad for a strong run.
Let's look at two stocks with heavy short interest I'd consider buying: artificial intelligence (AI) voice company SoundHound AI (NASDAQ: SOUN) and luxury furniture brand RH (NYSE: RH). One I'd avoid is Super Micro Computer (NASDAQ: SMCI).
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Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.