These 3 Stocks with High Short Interest Have Been Explosive

"Short interest can help investors gauge sentiment. Not only can high short interest identify potential high risks, it can also be a sign of a possible short squeeze situation - especially if the stock in question has been rocketing higher. In fact, here are three you may want to pay close attention to. Kohl's (NYSE: KSS): With 31% of its float short, KSS has been explosive. In fact, since bottoming out at around $10.25 in August, the retailer's stock is now up to $16.43."

"SoundHound AI (NASDAQ: SOUN): With 28% of its float short, SOUN has also been explosive. Since bottoming out at around $12 in August, SOUN is now back up to $17.71. Helping, analysts at H.C. Wainwright just raised its price target on SOUN to $28 from $18, with a buy rating. The firm predicted "material outperformance" in the coming periods, with third-quarter results in November potentially serving as a catalyst, as noted by Investing.com."

"Plug Power (NASDAQ: PLUG): With a short interest of about 30%, Plug Power is also among the most heavily shorted stocks. However, it's also been explosive, running from a September low of about $1.41 to a recent high of $4.58. Now back to $2.79, there's still a good deal of potential upside opportunity here. Helping, analysts at H.C. Wainwright raised its price target on PLUG to $7 with a buy rating."

Short interest gauges investor sentiment and can indicate elevated risk and potential for short squeezes when heavily shorted stocks rally. Kohl's shows about 31% of its float short and rose from roughly $10.25 in August to $16.43, with Citi issuing a 90-day positive catalyst watch and a $19 price target citing improved comparable sales and stronger web traffic. SoundHound AI has about 28% short interest, rose from near $12 to $17.71, and received a $28 price target and buy rating from H.C. Wainwright ahead of third-quarter results. Plug Power, with about 30% short interest, rallied from roughly $1.41 to $4.58 and drew a $7 target and buy rating amid green hydrogen optimism.

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