10 Most Shorted Mid-Cap and Small-Cap Stocks to Buy Now

8. Lyft Inc. (NASDAQ:LYFT)

Short Float: 28.29%

Market Cap: $5.64 Billion

Stock Upside Potential: 36.33%

Number of hedge fund holders: 50

Lyft Inc. (NASDAQ:LYFT) is one of the most shorted mid-cap and small-cap stocks to buy now. On May 14, Bernstein SocGen Group reiterated a Market Perform rating  on Lyft Inc. (NASDAQ:LYFT) with a $16 price target.

The stance follows discussions with the company’s CEO, David Risher, and CFO, Erin Brewer, centered on the company’s autonomous vehicles and pricing power. The executives reiterated the benefits of a hybrid network and a strategy focused on building deeper relationships with a narrower subset of partners. The Lyft  strategy differs from Uber’s broader partner strategy.

The executives also downplayed the North America Rides growth, which decelerated in the first quarter to mid-single digits. According to the executives, growth can fluctuate quarter over quarter. Consequently, they expect growth from higher-end business-to-business services and in international markets.

Lyft delivered another strong first quarter  with double-digit year-over-year growth across Active Riders and Gross Bookings. It also achieved $1 billion in cash for the trailing 12 months. Revenue in the quarter increased 14% to $1.7 billion, while gross bookings increased 19% to $4.9 billion.

Lyft Inc. (NASDAQ:LYFT) operates a multi-modal digital transportation network. Primarily known as the second-largest ride-hailing company in the United States, it connects passengers with independent drivers and provides access to public transit, shared bicycles, and e-scooters through a single mobile application.