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Just For You 3 Big Short Interest Names With Bullish SetupsWritten by Ryan Hasson. Published 9/22/2025. 
Key Points - Market momentum remains strong, with speculation rising but not at extreme levels, creating room for further upside.
- HIMS, DLO, and TEM each combine bullish technical setups with elevated short interest, making them prime candidates for potential squeezes.
- While speculation may eventually cool, the current backdrop supports momentum, and these names stand out as high-upside potential opportunities.
Last week, several momentum-driven stocks with high short interest broke out strongly, riding a wave of speculation as the broader market hit fresh highs. While this level of euphoria naturally raises questions about sustainability, history shows that momentum often extends further than skeptics anticipate. As Warren Buffett famously said, "The market can remain irrational longer than investors can stay solvent." The Fear & Greed Index currently sits at 62, reflecting greed but not yet extreme. Likewise, the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) holds an RSI of 71—stretched, but not at an extreme. In other words, there may still be room for momentum to run. Against this backdrop, three heavily shorted stocks stand out with technical setups that could fuel further upside if sentiment remains supportive. HIMS: A Retail Favorite on the Verge of a Breakout This year, Hims & Hers Health (NYSE: HIMS) has been under the microscope, drawing scrutiny from Washington regulators over advertising practices and telehealth distribution of GLP-1 weight-loss drugs. Just last week, the FDA posted over 100 letters to companies—including Hims & Hers—as part of a broader pharmaceutical crackdown. Despite these headwinds, the stock's performance has been remarkable: shares are up 139% year-to-date and 259% over the past twelve months. Technically, HIMS has been consolidating since May between the $40 support level and $65 resistance. On Friday, shares reached the $60 area, hinting at a potential retest of that upper boundary. What makes this setup especially compelling is the 38% short interest—over 74 million shares sold short. A decisive break above $65 could trigger a substantial short squeeze, propelling the stock even higher. DLO: Strong Earnings Fuel a Short Squeeze Setup DLocal Limited (NASDAQ: DLO), a fintech specialist in cross-border payments for emerging markets, largely flew under the radar—until its latest earnings report, which delivered a convincing beat on both revenue and earnings. The strong results helped DLO break out of a long base. Shares are now up nearly 40% year-to-date, and Wall Street has responded by raising the consensus price target from $12.45 three months ago to $14, alongside multiple upgrades. But the technical breakout is only part of the story. DLO carries a significant 23.4% short interest—nearly 15 million shares. Trading just above $15, the stock faces earnings-gap resistance near $16. Holding above $15 and clearing that $16 barrier could ignite another momentum wave and open the door to further price discovery. TEM: A High-Short AI Healthcare Play Tempus AI (NASDAQ: TEM) has been one of the standout performers of 2025, with shares up more than 160% year-to-date. The gains reflect Tempus's leading role in applying artificial intelligence and machine learning to precision medicine. Its core strength lies in oncology: Tempus offers genomic profiling, digital pathology, and data-driven insights to advance personalized cancer care. Technically, TEM is consolidating just below its all-time high near $91, creating a clear inflection point. The stock also carries a 25% short interest. A decisive breakout above $91 could trigger a powerful short squeeze, sending the shares even higher. With the AI healthcare theme still in its early innings and shorts heavily aligned against the stock, TEM could be poised for another impressive leg up. Momentum Remains Intact Although the broader market appears stretched, momentum is still intact—and heavily shorted names often benefit most in such environments. HIMS, DLO, and TEM each combine robust technical setups with elevated short interest, giving them the potential to squeeze higher if the bullish trend continues. While speculation will eventually cool, the current backdrop remains supportive. For investors scanning the tape, these three names represent some of the most intriguing bullish setups in today's market.
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