In this article, we will discuss the 10 Worst Aggressive Growth Stocks to Buy According to Short Sellers
According to Morningstar, stocks have experienced a healthy recovery over the past few months. However, the momentum was insufficient to propel the market to a new high for the year. All eyes are on the outcome of trade talks, with stocks settling into a holding pattern.
What’s Next for US Equities?
The analysts opine that the outlook for the broader equity market over the upcoming months appears to be relatively balanced, as bullish signals such as healthy earnings, a strong economy, and moderation on tariff policy offset the more bearish signals, including elevated valuations and deficit risk, says Morningstar. The market strategists believe that 2025 forecasts focus on returns of mid-single digits, reflecting a slowdown from the double-digit gains of the previous 2 years, added Morningstar.
Furthermore, the firm believes that despite worries related to sticky inflation and a potential labor market slowdown, the US economy appears to be resilient. Amidst Trump’s reversal on tariffs, forecasters have reduced the odds of recession. Also, the consumers continue to spend amidst gloomy measures of sentiment, added Morningstar.
Amidst such trends, we will look at the 10 Worst Aggressive Growth Stocks to Buy According to Short Sellers
Our Methodology
To list the 10 Worst Aggressive Growth Stocks to Buy According to Short Sellers, we chose stocks from the growth-oriented industries such as technology and biotechnology. After getting an extensive list of stocks, we narrowed it down to the ones having high short interest. Finally, the stocks are ranked in descending order of their short interest. We also mentioned the hedge fund sentiments around each stock, as of Q1 2025.
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 Worst Aggressive Growth Stocks to Buy According to Short Sellers
10. Ardelyx, Inc. (NASDAQ:ARDX)
Short % of Float (As of May 30): 13.76%
Number of Hedge Fund Holders: 28
Ardelyx, Inc. (NASDAQ:ARDX) is one of the 10 Worst Aggressive Growth Stocks to Buy According to Short Sellers. On June 18, H.C. Wainwright began coverage on the company’s stock with a “Buy” rating and a price objective of $10.00. The firm highlighted Ardelyx, Inc. (NASDAQ:ARDX)’s successful commercialization of bowel and kidney disease treatments.
The firm mentioned about Ardelyx, Inc. (NASDAQ:ARDX)’s demonstrated approval and commercial execution with IBSRELA for irritable bowel syndrome with constipation in adults and XPHOZAH for treating hyperphosphatemia in adults having chronic kidney disease on dialysis. Overall, the firm expects near-term commercial progress for Ardelyx, Inc. (NASDAQ:ARDX). The company delivered a strong Q1 2025, garnering $74 million in total revenue. As IBSRELA enters its 3rd full year on the market, it saw strong YoY growth of 57%.
The US net product sales revenue for IBSRELA during Q1 2025 came in at $44.4 million. This growth was supported by increases throughout key demand indicators, which include total writers and new and refill prescriptions. The US net product sales revenue for XPHOZAH during Q1 2025 came in at $23.4 million, thanks to the strong commercial momentum and execution.
Ardelyx, Inc. (NASDAQ:ARDX) is engaged in discovering, developing, and commercializing medicines to treat unmet medical needs.
