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Today's Bonus News 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 high short-interest, momentum-driven stocks posted strong breakouts as speculation surged and the broader market reached fresh highs. Although this euphoria raises doubts about sustainability, history shows that momentum can outlast skeptics' expectations. As Warren Buffett famously said, "The market can remain irrational longer than investors can stay solvent." The Fear & Greed Index stands at 62—reflecting greed but not yet extreme—while the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) carries an RSI of 71, stretched but not yet overbought. This suggests momentum may still have room to run. Against this backdrop, three heavily shorted stocks stand out with technical setups poised for further upside if sentiment remains supportive. HIMS: A Retail Favorite on the Edge of a Breakout This year, Hims & Hers Health (NYSE: HIMS) has been a lightning rod, drawing scrutiny from Washington regulators over its advertising practices and telehealth distribution of GLP-1 weight-loss drugs. Last week, the FDA posted over 100 letters to companies, including Hims & Hers, as part of a broader crackdown on pharmaceutical corporations. Despite these headwinds, the stock's performance has been nothing short of extraordinary—up 139% year-to-date and 259% over the past twelve months. Technically, HIMS has been consolidating since May between $40 support and $65 resistance. On Friday, the shares rallied toward $60, suggesting a retest of that upper boundary could be near. What makes this setup especially compelling is the 38% short interest, representing more than 74 million shares sold short. A decisive break above $65 could trigger a powerful squeeze, adding fuel to its already robust momentum. DLO: Strong Earnings Meet Heavy Shorts DLocal Limited (NASDAQ: DLO), a fintech specialist in cross-border payments across emerging markets, flew under the radar until its latest earnings release, which beat both revenue and profit estimates. The strong results helped DLO break out of a long base, with shares now up nearly 40% year-to-date. Wall Street has taken note, raising the consensus price target from $12.45 three months ago to $14, along with multiple upgrades. There's more to the setup: DLO carries 23.4% short interest, equal to almost 15 million shares. Trading just above $15, a sustained move through the earnings-gap resistance near $16 could ignite further momentum and open the door to fresh price discovery. TEM: A High-Short AI Healthcare Play Tempus AI (NASDAQ: TEM) has been one of 2025's standout performers, with shares up over 160% year-to-date as the company leverages artificial intelligence and machine learning in precision medicine. Its core focus is oncology, where Tempus provides genomic profiling, digital pathology, and data-driven insights to support personalized cancer care. Now, TEM is approaching a key inflection point. The stock has been consolidating beneath its all-time high near $91, creating a clean level to watch. Backed by 25% short interest, a decisive breakout could spark a powerful short squeeze. With the AI healthcare theme still in its early innings and shorts positioned heavily against it, TEM could be poised for another significant leg higher. Momentum Remains Firmly Intact Although the broader market appears stretched, momentum is firmly intact, and high short-interest names often emerge as top beneficiaries. HIMS, DLO, and TEM all feature strong technical setups combined with elevated short interest, setting them up for potential squeezes if bullish momentum persists. Speculation may eventually cool, but for now, the outlook remains supportive. For investors monitoring the tape, these three names rank among the most intriguing bullish setups in today's market.
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