Abby Yoder, JPMorgan Private Bank’s chief equity strategist, joined CNBC’s ‘Closing Bell’ on July 2 to discuss the market’s momentum as stocks began the second half of the year. Yoder confirmed her continued optimism and bullish stance, and referenced JP Morgan’s bull case, which projects the S&P to reach around 7,000 by the middle of the following year. She acknowledged that there was still much to learn in July, particularly concerning corporate earnings and policy developments, including tariffs. However, she emphasized that the 7,000 target appeared relatively plausible due to fundamental strength from a margin and earnings perspective, together of course with the continued market momentum.
Yoder is of the idea that the anticipated tax bill would lead to better growth than currently expected, that earnings would surpass current forecasts, and that the ultimate impact of tariffs on the economy would not be as severe as feared. She explained that when companies reported their results for the previous quarter, they had been operating under a worst-case scenario regarding tariffs. Consequently, their guidance for the subsequent quarter saw estimates revised down by about 4.5% to 5%, which was higher than the typical reduction of 3% to 3.5%. She noted that companies had attempted to provide a framework for these expectations. Yoder then connected this to macroeconomic data and stated that since the data had not shown the effects of tariffs, it was likely that company results also would not, suggesting potential upside surprises.
That being said, we’re here with a list of the 10 best high short interest stocks with huge upside potential.
A portfolio manager in front of their computer screen, evaluating a variety of mid-cap stocks.
Methodology
We sifted through different stock screeners to compile a list of stocks with a short interest between 10% and 25%. We then selected the top 10 stocks with an upside potential of over 25%. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q1 2025, which was sourced from Insider Monkey’s database.
Note: All data was collected on July 3.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best High Short Interest Stocks With Huge Upside Potential
10. Peloton Interactive Inc. (NASDAQ:PTON)
Short % of Float as of June 13: 19.74%
Number of Hedge Fund Holders: 52
Average Upside Potential as of July 3: 24.25%
Peloton Interactive Inc. (NASDAQ:PTON) is one of the best high short interest stocks with huge upside potential. Earlier in June, Peloton officially launched “Peloton Repowered,” which is a new peer-to-peer resale marketplace for its equipment and accessories. Currently in its beta phase, the platform is initially available only to sellers located in the Boston, New York City, and Washington, D.C. metropolitan areas, with plans for national expansion in the coming months.
At launch, users can list items for sale, and the ability to purchase is expected to become available to buyers in the same metro areas within the then-next few weeks. Sellers on Peloton Repowered will receive 70% of the sale price. Additionally, successful sellers will be given a discount on new Peloton workout equipment, ranging from $200 to $600, depending on the type of new equipment purchased.
Buyers utilizing Peloton Repowered will benefit from a reduced used equipment activation fee of $45, which is a decrease from the typical $95 fee. Sellers have the option to arrange for pickup with buyers or use a prepaid USPS label for accessories. The Peloton Repowered platform is operated in partnership with Archive, which is a resale company that raised $15 million in a Series A funding round in 2022 and recently completed a $30 million Series B funding round on February 4 this year, bringing its total funding to $54 million.
Peloton Interactive Inc. (NASDAQ:PTON) operates an integrated fitness platform in North America and internationally.
9. Patterson-UTI Energy Inc. (NASDAQ:PTEN)
Short % of Float as of June 13: 13.86%
Number of Hedge Fund Holders: 45
Average Upside Potential as of July 3: 26.78%
Patterson-UTI Energy Inc. (NASDAQ:PTEN) is one of the best high short interest stocks with huge upside potential. Earlier in June, Patterson-UTI Energy reported its drilling activity for May this year. For the whole month, he company had an average of 103 drilling rigs operating in the US.
Looking at a broader period, the average number of drilling rigs operating in the US for the 2 months ended May 31 this year was 106. Average drilling rigs operating reported in Patterson-UTI Energy’s monthly announcements represent the average number of the Company’s drilling rigs that were earning revenue under a drilling contract in the US.
The company clarifies that the “average drilling rigs operating” reported in their monthly announcements represent rigs that were actively earning revenue under a drilling contract in the US. Patterson-UTI cautions that this metric alone does not fully impact the company’s operating results, as numerous other factors can influence financial performance as well.
Patterson-UTI Energy Inc. (NASDAQ:PTEN) intends to continue providing monthly updates on drilling rig activity shortly after the end of each month. The company provides contract drilling services, integrated well completion services, and directional drilling services in the US, as well as specialized drill bit solutions in the US, the Middle East, and other international regions.
8. BridgeBio Pharma Inc. (NASDAQ:BBIO)
Short % of Float as of June 13: 18.75%
Number of Hedge Fund Holders: 59
Average Upside Potential as of July 3: 31.85%
BridgeBio Pharma Inc. (NASDAQ:BBIO) is one of the best high short interest stocks with huge upside potential. On June 30, BridgeBio Pharma announced that it had raised $300 million through a partial capped monetization of its European royalty rights for BEYONTTRA. This financing agreement was made with HealthCare Royalty (HCRx) and funds managed by Blue Owl Capital.
Under the agreement, BridgeBio received an upfront payment of $300 million in exchange for 60% of the royalties on the first $500 million of annual BEYONTTRA net sales in Europe. The total payments to the investors are subject to an initial cap of 1.45x the upfront investment, so once this cap is reached, no further payments will be owed to HCRx and Blue Owl.
BEYONTTRA (acoramidis) is an orally administered, near-complete stabilizer of transthyretin, shown for the treatment of wild-type or variant transthyretin amyloidosis in adult patients with cardiomyopathy. The deal provides BridgeBio with immediate and less dilutive capital, which will strengthen the company’s balance sheet and support the ongoing launch of Attruby in the US and its late-stage pipeline programs.
BridgeBio Pharma Inc. (NASDAQ:BBIO) is a commercial-stage biopharmaceutical company that discovers, creates, tests, and delivers transformative medicines to treat patients who suffer from genetic diseases and cancers.
7. Omnicom Group Inc. (NYSE:OMC)
Short % of Float as of June 13: 15.92%
Number of Hedge Fund Holders: 44
Average Upside Potential as of July 3: 32.51%
Omnicom Group Inc. (NYSE:OMC) is one of the best high short interest stocks with huge upside potential. On June 26, Achieve Life Sciences Inc. (NASDAQ:ACHV) announced a strategic innovation partnership with Omnicom. Omnicom has been named Achieve’s agency of record to lead initiatives for the US commercial launch of cytisinicline, which is positioned to be the first potential new treatment for nicotine dependence in nearly two decades.
The expanded partnership builds on an existing relationship and aims for a technology-led, integrated, and data-driven launch strategy. The US launch platform for cytisinicline is being developed by Credera, which is Omnicom’s technology powerhouse and uses AI-enabled marketing technology proven in healthcare and other industries for precise targeting, optimized channel performance, and accelerated engagement with healthcare professionals and patients.
Omnicom has assembled a unified agency team that draws on specialized talent from Goodby, Silverstein & Partners for consumer brand development, DDB Health for medical education, and Ketchum Health for strategic public relations and communications. The cross-functional approach applies proven insights from different industries to set a new standard for biopharma commercialization.
Omnicom Group Inc. (NYSE:OMC) offers advertising, marketing, and corporate communications services. Achieve Life Sciences Inc. (NASDAQ:ACHV) is a late-stage pharmaceutical company that develops and commercializes cytisinicline for nicotine independence in Canada, the US, and the UK.
6. Nuvalent Inc. (NASDAQ:NUVL)
Short % of Float as of June 13: 16.95%
Number of Hedge Fund Holders: 43
Average Upside Potential as of July 3: 39.17%
Nuvalent Inc. (NASDAQ:NUVL) is one of the best high short interest stocks with huge upside potential. On June 24, Nuvalent announced positive pivotal data from its global ARROS-1 Phase 1/2 clinical trial for zidesamtinib. The novel ROS1-selective inhibitor is being developed for TKI (tyrosine kinase inhibitor) pre-treated patients with advanced ROS1-positive non-small cell lung cancer/NSCLC.
The company also provided updates on the front-line development strategies for its parallel lead programs in both ROS1-positive and ALK-positive NSCLC. For zidesamtinib, Nuvalent has aligned with the FDA on its NDA submission strategy for TKI pre-treated patients with advanced ROS1-positive NSCLC.
The FDA has agreed to accept the NDA for participation in the Real-Time Oncology Review/RTOR pilot program, which allows for earlier submission of topline data to expedite the FDA’s evaluation. Nuvalent plans to initiate a rolling NDA submission this July, with completion targeted for Q3 2025.
Nuvalent Inc. (NASDAQ:NUVL) is a clinical-stage biopharmaceutical company that develops therapies for patients with cancer.
5. Caesars Entertainment Inc. (NASDAQ:CZR)
Short % of Float as of June 13: 13.53%
Number of Hedge Fund Holders: 63
Average Upside Potential as of July 3: 51.46%
Caesars Entertainment Inc. (NASDAQ:CZR) is one of the best high short interest stocks with huge upside potential On June 26, Caesars Entertainment announced the launch of Remote Reels at Tropicana Atlantic City. The innovative online casino feature allows players to remotely access and play real slot machines located on the casino floor through the Caesars Palace Online Casino app on their mobile devices and desktops.
This marks a step in Caesars’ efforts to integrate the land-based casino experience with its online platforms and offer popular slot titles found at Caesars Rewards destinations in a remote-to-cabinet format for the first time. The Remote Reels studio was created in partnership with Awage and spans 937 square feet, situated directly on the casino floor at Tropicana Atlantic City. Enclosed in glass walls, the studio houses 25 slot machines featuring popular titles from premier operators.
The launch of Remote Reels is the latest in a series of innovations for Caesars’ online casino platforms, which include Caesars Palace Online Casino, Caesars Sportsbook & Casino, Horseshoe Online Casino, Tropicana Online Casino, and WSOP Online. Just last month, Caesars launched its first online casino title, fully developed by its newly established in-house games studio, Caesars Palace Signature Multihand Blackjack Surrender.
Caesars Entertainment Inc. (NASDAQ:CZR) is a gaming and hospitality company.
4. Jazz Pharmaceuticals (NASDAQ:JAZZ)
Short % of Float as of June 13: 11.14%
Number of Hedge Fund Holders: 52
Average Upside Potential as of July 3: 57.15%
Jazz Pharmaceuticals (NASDAQ:JAZZ) is one of the best high short interest stocks with huge upside potential. On July 2, Jazz Pharmaceuticals announced that the European Commission/EC had granted conditional marketing authorization for its new bispecific antibody, called Ziihera (zanidatamab), for the treatment of biliary tract cancer/BTC.
The approval extends to all European Union member states, as well as Norway, Iceland, and Liechtenstein. Ziihera is authorized as a single agent for adults with unresectable locally advanced or metastatic HER2-positive (IHC 3+) BTC who have previously received at least one line of systemic therapy. The recommended dose for zanidatamab is 20mg/kg, administered intravenously every two weeks, until disease progression or unacceptable toxicity.
The EC’s decision was supported by data from the Phase IIb HERIZON-BTC-01 trial, which included 87 participants with previously treated, locally advanced or metastatic HER2-positive BTC. The continuation of this conditional approval depends on further clinical benefits being demonstrated in the ongoing Phase III HERIZON-BTC-302 trial.
Jazz Pharmaceuticals (NASDAQ:JAZZ) identifies, develops, and commercializes pharmaceutical products in the US, Europe, and internationally.
3. BioCryst Pharmaceutical Inc. (NASDAQ:BCRX)
Short % of Float as of June 13: 11.07%
Number of Hedge Fund Holders: 43
Average Upside Potential as of July 3: 67.79%
BioCryst Pharmaceutical Inc. (NASDAQ:BCRX) is one of the best high short interest stocks with huge upside potential. On June 27, BioCryst Pharmaceuticals announced a definitive agreement to sell its European ORLADEYO (berotralstat) business to Neopharmed Gentili for a total consideration of up to $264 million.
The amount includes an upfront payment of $250 million for the European assets and rights related to ORLADEYO, along with up to an additional $14 million in future milestones contingent on sales in Central and Eastern Europe. The closing of this transaction is anticipated by early October this year. BioCryst plans to utilize the proceeds from this sale to retire all remaining term debt, amounting to $249 million from Pharmakon.
This is expected to eliminate ~$70 million in future interest payments over the remaining life of the loan. Consequently, BioCryst projects to end 2027 with ~$700 million in cash and no term debt, representing an increase of $400 million compared to its previous net cash guidance for 2027. The acquisition by Neopharmed Gentili also involves taking over BioCryst’s European organization, which is expected to result in at least $50 million in annual operating expense savings for BioCryst.
BioCryst Pharmaceutical Inc. (NASDAQ:BCRX) is a biotechnology company that develops oral small-molecule and injectable protein therapeutics to treat rare diseases. Neopharmed Gentili is a pharmaceutical company founded in Italy.
2. Revolution Medicines Inc. (NASDAQ:RVMD)
Short % of Float as of June 13: 10.37%
Number of Hedge Fund Holders: 61
Average Upside Potential as of July 3: 90.12%
Revolution Medicines Inc. (NASDAQ:RVMD) is one of the best high short interest stocks with huge upside potential. On June 30, Revolution Medicines and Summit Therapeutics Inc. (NASDAQ:SMMT) announced a clinical collaboration to evaluate combinations of Revolution Medicines’ investigational RAS(-ON) inhibitors with Summit Therapeutics’ ivonescimab in multiple solid tumor settings.
The collaboration will assess the safety and efficacy of these combinations in RAS mutant non-small cell lung cancer/NSCLC, pancreatic ductal adenocarcinoma/PDAC, and colorectal cancer/CRC. Under the agreement, Summit Therapeutics will supply ivonescimab for clinical research, while Revolution Medicines will serve as the study sponsor. Both companies will retain commercial rights to their respective compounds.
The agreement is mutually non-exclusive, allowing each company to pursue additional partnerships. Revolution Medicines will contribute 3 of its clinical-stage RAS(-ON) inhibitors to the collaboration: daraxonrasib (RMC-6236), which is a multi-selective inhibitor; zoldonrasib (RMC-9805), which is a G12D-selective inhibitor; and elironrasib (RMC-6291), which is a G12C-selective inhibitor.
Revolution Medicines Inc. (NASDAQ:RVMD) is a clinical-stage precision oncology company that develops novel targeted therapies for RAS-addicted cancers. Summit Therapeutics Inc. (NASDAQ:SMMT) is a biopharmaceutical company.
1. Vera Therapeutics Inc. (NASDAQ:VERA)
Short % of Float as of June 13: 17.28%
Number of Hedge Fund Holders: 43
Average Upside Potential as of July 3: 160.42%
Vera Therapeutics Inc. (NASDAQ:VERA) is one of the best high short interest stocks with huge upside potential. Earlier in June, Vera Therapeutics announced positive topline results from its ongoing global, multicenter, randomized, double-blind, and placebo-controlled ORIGIN Phase 3 trial of atacicept for the treatment of immunoglobulin A nephropathy (IgAN) in adults.
The trial met its primary endpoint and showed a statistically significant and clinically meaningful reduction in proteinuria at week 36. The safety profile of atacicept was favorable and comparable to that of the placebo. IgA nephropathy is a kidney disease characterized by the buildup of an immune protein called immunoglobulin A (IgA) in the kidneys. This leads to inflammation and can progressively impair the kidneys’ ability to filter waste from the blood, potentially leading to kidney failure.
Atacicept is an investigational recombinant fusion protein that inhibits two key cytokines: B-cell activating factor/BAFF and A PRoliferation-Inducing Ligand/APRIL, which are involved in B-cell survival and autoantibody production linked to autoimmune diseases like IgAN. Vera Therapeutics plans to meet with the FDA in the coming weeks to discuss these results and the regulatory pathway for atacicept.
Vera Therapeutics Inc. (NASDAQ:VERA) is a clinical-stage biotechnology company that develops and commercializes transformative treatments for patients with serious immunological diseases.
While we acknowledge the potential of VERA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VERA and that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
