 Short interest above 20% is high, but these two stocks blow that figure out of the water. These highly volatile names are among the most... ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ |
| | Written by Leo Miller 
In a market increasingly driven by speculation and sentiment, two stocks have emerged as battlegrounds for bearish investors: Wolfspeed (NYSE: WOLF) and Kohl’s (NYSE: KSS). Both names currently rank among the most heavily shorted on Wall Street, with short interest exceeding a staggering 40% of their floated shares. This intense pessimism reflects deep concerns about their financial health and leadership, but it also sets the stage for dramatic short squeezes, should either company defy expectations and show signs of a turnaround.. WOLF: On the Verge of Bankruptcy, May Need Trump Lifeline to Keep the Lights On Wolfspeed is a chip company among the most shorted stocks on the market. According to MarketBeat data, investors sold short over 45% of Wolfspeed’s floated shares as of May 15, marking the highest level in its history. A recent report from the Wall Street Journal (WSJ) claimed that Wolfspeed is preparing to file for bankruptcy. The company reportedly rejected proposals from its creditors to restructure its $6.5 billion in debt. Wolfspeed shares plummeted over 59% on May 21 after the news broke. The company’s ability to repay its debt and continue operating hinges significantly on its ability to receive $750 million in CHIPS Act funding. However, this funding was just a proposal from the U.S. Department of Commerce under the Biden Administration. It was never officially granted. Now, President Trump is making efforts to significantly rework the CHIPS Act, greatly jeopardizing whether Wolfspeed will ever actually receive the funds. According to Jeff Koch at SemiAnalysis, companies that are not involved in leading-edge chips or AI are particularly at risk of losing their subsidies. Wolfspeed is not directly involved in AI, making chips for automotive, industrial, and other use cases. However, it does focus on silicon carbide and gallium nitride-based chips, often considered “next-generation” semiconductor materials. It also manufactures its chips in the United States, something President Trump would likely take into account. Koch believes Wolfspeed could still receive tax credits, even if it doesn’t receive the CHIPS Act grants. The company plans to apply for $600 million worth of tax credit refunds after June 30. Investors continue to trade Wolfspeed stock, possibly in hopes that some type of last-ditch effort can help save the firm. The company’s huge short interest makes it a squeeze candidate, but it is possible the company could file for bankruptcy any day now. Analysts at TD Cowen recently suspended their stock coverage due to the "increasing likelihood of financial restructuring." Turmoil Embroils Kohl’s, But Some Analysts See a Path Forward Next is the retail company Kohl's. According to MarketBeat data, investors sold short just under 54% of Kohl’s floated shares as of May 15. This figure has been climbing for some time now, reaching its highest level ever. The company’s extremely high short interest makes sense. Kohl’s hasn’t posted a quarter of positive year-over-year sales growth since calendar Q4 2021. Even in that quarter, it's hard to give the company a lot of credit. Easy comparisons versus 2020 due to low sales during the COVID pandemic likely played a big role in creating that sales growth aberration. The company also recently ousted its Chief Executive Officer (CEO), Ashley Buchanan. However, the firing wasn’t just due to unsatisfactory performance. Kohl’s found that its CEO had been directing millions of dollars’ worth of business to someone with whom they had a romantic relationship. Buchanan was Kohl’s third CEO in as many years, highlighting the massive amount of dysfunction at the company. Overall, Kohl’s is in the midst of a huge turnaround effort. Still, at least some analysts are not entirely down on the stock after the firm’s May 29 earnings report. Analysts at Baird recently lifted their price target on Kohl's to $9. This implies shares could rise 10% from their June 2 closing price of $8.16. Analysts at Telsey Advisory Group also reiterated their $9 target after Kohl’s reported earnings. If the stock reached these targets, it is possible it could rocket much higher through the triggering of a short squeeze. However, analysts at Barclays are siding with the bears, placing a $5 price target on the stock. Analysts at Goldman Sachs also reiterated their Sell rating. Overall, Wolfspeed and Kohl's are two highly risky and speculative stocks. This is particularly true for Wolfspeed. The prospects of climbing out of the hole it has dug are becoming increasingly unrealistic.  Read This Story Online | With the next presidential cycle heating up and Trump leading the charge, major market shifts are already taking shape.
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| Written by Thomas Hughes 
Ollie’s Bargain Outlet (NASDAQ: OLLI) had a solid quarter in Q2, with only one thing overshadowing the results: margins. The company’s gross margin remained steady despite the influence of competing factors, but increased costs, including start-up and dark rent, eroded the profit outlook. While revenue is growing robustly for this retailer due to the expansion into vacated Big Lots locations, profits are not keeping pace. The critical details for investors are that today’s increased costs are positioning the company for future growth and earnings leverage. Not only are comp sales growing at a modest single-digit pace in the existing business, but the new stores will drive a systemwide acceleration and improve operating leverage as unused square footage gets put to use. Until then, the company’s profits are sufficient to sustain its growth trajectory, maintain a healthy balance sheet, and support capital returns. Yes, Ollie’s Accelerates Growth in 2025 Ollie’s move to acquire bankrupt Big Lots locations was a good one, allowing it to accelerate its growth. Revenue grew by 13.4% in Q1, outpacing the consensus estimates by 190 basis points on a 13.2% YOY increase in store count. Growth is also driven by comp-store gains of 2.4%, which is entirely due to transaction volume. Loyalty membership is another area of strength, indicating long-term growth, which is up 9% and is expected to continue increasing as new stores are added and penetration gains are made. The margin contracted, but there is good news. The margin contracted, but less than expected, resulting in adjusted net income and earnings increasing by about 3%. The critical factor is that guidance was improved, including the anticipated impact from tariffs. The revenue forecast was increased due to accelerated store count growth and comp-store strength, and will outpace competitors. Still, the earnings forecast was maintained, including the impact of dark rents, with improving operational leverage offsetting the effects of tariffs. Ollie’s also accelerated its shareholder value gain. Highlights from the balance sheet are overwhelmingly positive, with cash, investments, inventory, current, and total assets all increasing, more than offsetting the increases in liabilities. The balance sheet remains net cash, long-term debt has declined, and total liabilities are extremely low at roughly 0.35 times the equity, which has increased by 13%. Regarding capital returns, Ollie’s doesn’t yet pay dividends and only repurchases enough shares to offset dilutive actions, but it is in a position to begin accelerating its return soon. Sell-Side Activity Supports the Uptrend in Ollie’s Share Price Sell-side activity, including analysts, institutions, and short-sellers, aligns with an uptrend in Ollie’s stock price. The 14 analysts tracked by MarketBeat rate the stock as a Moderate Buy with a bullish bias. Coverage is firm, with a consensus price target that forecasts a 10% upside in early June, and the revision trend is trending towards the high-end range. Institutions, which own nearly 100% of the stock, have been buying on balance this year and provide a strong support base, while short-sellers were covering as of the May 15 report. The price action in OLLI shares pulled back in premarket trading following the release, opening a likely buying opportunity. The trend in the action since 2022 is bullish, and the Q1 2025 report aligns with acceleration, not deceleration, which is a bullish catalyst. The critical support target is near the 150-day EMA; a move below that could lead to sideways movement in 2025. However, assuming support remains solid, this stock is likely to continue trending higher, potentially reaching the consensus target of $124 by year's end and setting a new all-time high. 
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| Written by Ryan Hasson 
Rocket Lab USA, Inc. (NASDAQ: RKLB) has taken another significant step in its evolution from a launch provider to a vertically integrated space and defense company. The company recently announced a definitive agreement to acquire Geost, a developer of electro-optical and infrared (EO/IR) payloads for national security satellites. With this acquisition, Rocket Lab officially enters the payload segment, broadening its capabilities, improving its margins, and positioning itself as a full-service provider in the growing national security space race. Following the announcement, RKLB received several bullish analyst upgrades. Firms highlighted the deal's strategic value and its long-term implications for the company’s position in the defense and aerospace sectors. Rocket Lab to Acquire Geost for $275 Million Last week, Rocket Lab unveiled plans to acquire Geost in a deal valued at up to $275 million, including $125 million in cash and $150 million in Rocket Lab stock, along with a potential $50 million earnout. The deal is expected to close in the second half of this year. It includes Geost’s intellectual property, manufacturing infrastructure in Arizona and Virginia, and its team of 115 highly skilled engineers and technical staff. Geost brings over two decades of experience developing EO/IR payloads used in missile tracking, tactical intelligence, surveillance, reconnaissance (ISR), and space domain awareness. These are all key priorities for the U.S. Department of Defense and are aligned with initiatives such as the Space Development Agency’s Tracking Layer and Golden Dome programs. The move expands Rocket Lab’s value proposition beyond launch and satellite buses into the high-value payload space, reducing integration risks and increasing control over mission cost and timelines, which is particularly important for defense customers. Rocket Lab CEO Peter Beck said of the acquisition: “With the acquisition of Geost, we’re bringing advanced electro-optical and infrared payloads in-house to support secure, responsive, and cost-effective systems at scale.” Analysts See Upside Following Announcement The market took notice. On May 28, several analysts raised their price targets for Rocket Lab. Roth Capital raised its target price from $25 to $35, while maintaining a Buy rating. Stifel Nicolaus analyst Erik Rasmussen also increased his target price from $29 to $34, citing the strategic importance of the Geost acquisition and its potential to expand Rocket Lab’s addressable market significantly. Analysts at Stifel emphasized that the acquisition strengthens Rocket Lab’s foothold in defense and aerospace and supports its long-term growth strategy by unlocking new revenue streams. Needham & Company also weighed in positively, increasing its target from $28 to $32 and maintaining its Buy rating. In total, RKLB now has 14 analyst ratings, with a consensus rating of Moderate Buy. That said, the average price target currently sits at $25.18, implying a modest downside from current levels. This reflects both the stock’s sharp run-up over the previous year, with gains exceeding 500%, and some skepticism surrounding its lofty valuation and lack of profitability, which have yet to align with the company’s long-term vision. Technical Momentum and Market Positioning Despite mixed earnings, momentum is clearly on Rocket Lab’s side. The stock has increased by over 536% in the past year and 42% so far this quarter, garnering significant attention from retail investors. Even during the recent broader market corrections, RKLB held up well and is now trading just beneath key resistance around the $30 level. From a technical standpoint, the $25 level is shaping up as a potential new support zone. Investors looking to enter or add to positions may want to wait for some sideways consolidation or a retest of this level to confirm a higher low before chasing a breakout. Thereafter, a clean move above $30 could pave the way for new highs. A Transformative Step in the Company’s Mission Rocket Lab’s planned acquisition of Geost is more than just another deal; it’s a transformative step in the company’s mission to become a vertically integrated defense and space contractor. With analysts bullish on the move and momentum on its side, RKLB remains a name to watch, especially if it continues to execute and expand its presence in the national security space. Read This Story Online | Washington is running out of money…And guess where they'll look next?
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