Recently, we published a list of 10 Best Short Squeeze Stocks to Buy According to Analysts. In this article, we’ll analyze how TG Therapeutics, Inc. (NASDAQ:TGTX) stands in relation to other top short squeeze stocks that have received favorable Buy ratings from analysts.
Trading in the stock market is dynamic, and short squeezes are one of the few phenomena that can significantly affect market trends. A short squeeze occurs when a heavily shorted stock experiences a sudden price rise, forcing short sellers to buy shares to cover their positions, which in turn escalates the upward momentum. Savvy investors can capitalize on these occurrences if they recognize these opportunities early. Recent market trends following Donald Trump’s rise to the presidency have further highlighted the importance of short squeezes.
The stock market’s volatility spiked after President Trump’s announcement of a 25% tariff on imports from Canada and Mexico, effective March 4, 2025. This was accompanied by increased tariffs on Chinese goods, leading to market fluctuations that impacted U.S. stocks and prompted retaliatory threats from other countries, including Canada.
By March 6, 2025, President Trump signed orders exempting several goods from the new tariffs, including a temporary suspension on tariffs affecting carmakers from Canada and Mexico. However, this decision did little to mitigate the significant adverse effects on the U.S. stock market, as individual investors pulled a record $1.2 billion from U.S. equity markets, marking the highest withdrawal in a decade.
The impact of tariffs extends beyond market fluctuations in the U.S. Other incidents can also influence the market, creating opportunities for potential short squeezes. For example, new AI models from China caused turbulence in the tech sector, prompting many large tech firms to experience unprecedented declines in returns. These foreign AI models offered more flexibility and lower prices compared to their U.S. equivalents, leading to investor pullback from U.S. tech stocks.
While hedge funds have been reducing their stakes in Chinese equities for four weeks straight, the excitement surrounding Chinese tech stocks driven by new AI startups has begun to decline. This cautious trend may open up possibilities for short squeeze scenarios across various sectors. Additionally, Asia-focused hedge funds have outperformed their U.S. counterparts during recent market sell-offs, as global investors looked toward Chinese stocks amid U.S. market volatility. These developments likely heighten the chances of short squeezes in different markets, including the U.S.
As a result, analysts are paying close attention to stocks with high short interest and significant upside potential. It’s advantageous for investors to explore the top ten short squeeze stocks recommended by analysts. Our list has been curated using key financial metrics; specifically, we’ve focused on stocks with a short float exceeding 15%, indicating considerable short interest. We also filtered stocks based on relative volume, selecting those with volumes over 1.5, as well as those exhibiting positive earnings per share (EPS) to identify profitability. Finally, stocks received by analysts with a Buy recommendation were further refined, assuring favorable market sentiment, and all included stocks had an average trading volume of at least 100k for sufficient liquidity. Our final rankings were based on analysts’ potential upside predictions for each stock.
