Penny Stocks To Buy Now? 4 Short Squeeze Stocks To Watch

Top Penny Stocks To Buy Today?

If you’re searching for penny stocks to buy now, this week could be a wild one. A lot is going on, including July’s Federal Reserve Meeting minutes and a slew of retail data. Everything from earnings to economic reports hit the tape this week. How will this information play out in the stock market?

For one, retail earnings and economic data will give further support to or add more uncertainty as to whether or not inflation is peaking. You’ve also got the Fed minutes that will provide a glimpse into the state of future rate hikes that are anticipated to dampen inflationary pressures further. Will it be a 75 or 50 bps hike? That’s something we’ll find out later this week.

Penny Stocks To Buy

With an undertone of bullishness to start the week, retail traders are hunting for opportunities. One of the trends in the stock market today has placed a focus on short squeeze stocks. Lately, stocks with high short interest have captivated retail traders’ attention. There aren’t any guarantees that a “squeeze” happens, but if it does, it can mean big moves in the market.

Take, for instance, one of the penny stocks we’ve followed since July, Bed Bath & Beyond (NASDAQ: BBBY). Sure, the stock has graduated from the penny stock level, but it has done so in an aggressive fashion. After identifying strong insider buying, shares of BBBY stock have exploded. In just a month, the former penny stock has jumped from under $5 to over $15 as of today’s premarket hours.

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This article looks at a few penny stocks with high short interest. Even with large bets against these companies, some traders are taking a shot at a bullish break in the action.

Short Squeeze Penny Stocks To Watch

1. SmileDirectClub Inc. (NASDAQ: SDC)
2. Blue Apron Holdings (NYSE: APRN)
3. Bionano Genomics (NASDAQ: BNGO)
4. Canopy Growth Corporation (NASDAQ: CGC)

SmileDirectClub Inc. (NASDAQ: SDC)

We’ve had SmileDirectClub stock on our watch list for the last few weeks. Whether it’s been unusual options volume or high short interest, SDC has gained the attention of retail traders. Coincidentally, this sentiment has been driving momentum over the last few weeks.

The oral health company hasn’t released much since its Q2 earnings results at the start of August. SmileDirect missed sales and EPS for the quarter. It also set 2022 guidance below estimates. Despite negative analyst ratings and slashed price targets from Morgan Stanley and Stephens, SDC stock has remained hot.

That might be based on the other factors, including the SDC stock short interest. According to Fintel.IO, this figure sits at 23.31%. Meanwhile, other outlets like TDAmeritrade have the SDC short float percentage slightly lower at 22.03%. Do with this information what you may, but retail sentiment has trumped fundamentals so far.

Blue Apron Holdings (NYSE: APRN)

Like SmileDirect, Blue Apron is more of a household name stock traders are watching closely. The meal kit company has long been a name the market knows about. However, mixed earnings results over the last few quarters and general economic headwinds haven’t helped things from a consistent stance over the previous few quarters.

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That doesn’t mean APRN stock isn’t one of the penny stocks to watch right now. We’ve followed the company more closely as the short squeeze stocks trend takes over the retail market. Last week, we discussed the company after an amended 13D filing showed a larger shareholder, Joseph Sanberg boosted his stake in the company. Specifically, the filings showed him having 27,623,755 or a roughly 51.3% stake. This vote of confidence resonated with traders as short volume (23.76% short float) has come back into focus.

Today there are a few more things to keep in mind, including a strong surge in Call buying at the August 19th and September 16th expirations. You’ve also got Fintel short interest sitting around 44.8% and TD showing a short of 23.49%.

Bionano Genomics (NASDAQ: BNGO)

Bionano Genomics has made a strong move this quarter to fresh 2022 highs. Last month, we talked about BNGO stock after analyst insight brought some attention to the company. Oppenheimer recently assumed coverage of the company. Its BNGO stock forecast includes an Outperform rating and a $12 price target. At the time of the article, the target was more than 600% higher than current trading levels. Even about a month later, that target remains considerably higher.

What’s going on with BNGO stock right now? The genome analysis company reported earnings earlier this month, showing a 73% year-over-year revenue growth. The company also saw its Saphyr system installed at 196 placements, up 62$ from the previous year’s quarter. Erik Holmlin, Ph.D., president and chief executive officer of Bionano, also explained, “We remain on track to achieve all of our previously outlined ELEVATE! milestones for the second half of the year. We believe all of these achieved and planned advancements, together with further validation of OGM utility supported by recent publications, lay the foundation for further penetration of our target markets and revenue growth.”

Is BNGO stock ready to squeeze? Time will tell, but the data is where to begin looking. Fintel and TDAmeritrade have the BNGO stock short float percentage at 16.04% and 16.02%.

Canopy Growth Corporation (NASDAQ: CGC)

Don’t write off marijuana stocks just yet. Despite years of downtrodden sentiment and price, these companies remain on the daily watch list for traders to capitalize on volatility trends. That’s the case in the stock market today. Canopy Growth is part of a growing list of marijuana stocks to watch right now.

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Following its fiscal 2023 first quarter results, the sentiment was mixed at the beginning of August. Canopy reported C$110.1 million in revenue and a loss per share of C$5.23. But the high note, no pun intended, was the company’s international medical cannabis net revenue. It doubled versus Q1 FY2022. Its BioSteel revenues also hit a record in Q1 FY 2023 and were up 169% from its previous year’s quarter.

With more legislation on the table, things are turning slightly more optimistic for the industry. That has traders hunting for short squeeze opportunities. As of this article, CGC stock’s short interest, according to TDAmertitrade and Fintel, sits around 9.35%. It isn’t the highest among the list of penny stocks but could be something to keep in mind if CGC is on your radar.

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