In this article, we will be looking at the 11 best short squeeze stocks to buy now.
The latest U.S. tariff wave has created a suitable environment where short squeeze investments will thrive. On August 7, 2025, President Donald Trump’s reciprocal duties came into effect, slapping steep rates on dozens of trading partners. According to CNBC, Syria faces a 41% tariff, Laos and Myanmar at 40%, and Switzerland at 39% after a failed last-minute deal. Brazil and India feel the tightest squeeze as they face 50% duties, effective by the end of this month. Even the U.S. allies were not spared, as 15% tariffs were imposed on the EU, Japan, and South Korea
In addition to disrupting the supply chains, the ripples from these trade shocks could potentially impact the investors’ decisions. Stocks under the industries heavily exposed to tariffs often attract significant short interest since traders bet on earnings pressure and valuation declines. However, in a highly volatile climate, all that’s needed are a surprise earnings beat, policy reversal, or strategic deal to turn those bearish wagers upside-down.
As of now, these contributors are widely scattered without favoring any single sector in the economy. We have come up with a list of 11 best short squeezes that could be potentially rewarding to investors in this highly volatile and tense market.
Image by Nattanan Kanchanaprat from Pixabay
Our Methodology
When putting together our list of 11 best short squeeze stocks to buy now, we followed a few criteria. Primarily, we included stocks with a short float of 20% or above. With respect to catalysts potentially impacting the stock price, we looked up the company’s press releases and the analyst reports from credible websites such as CNN. For ranking the stocks, we have used the short float %. All the data used in the article was taken from financial databases and analyst reports, with all information updated as of August 12, 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).
11. Pagaya Technologies Ltd. (NASDAQ:PGY)
Short Float: 23.82%
Pagaya Technologies Ltd. (NASDAQ:PGY) is among our list of 11 best short squeeze stocks to buy now. The company’s Q2 results have exceeded expectations, and its strategic moves are gaining a positive outlook among investors.
The Israel-based company listed on NASDAQ, Pagaya Technologies Ltd. (NASDAQ:PGY), deploys proprietary AI and machine learning platforms for optimizing B2B lending. It partners with financial institutions and fintech, underwriting loans, including second-look consumer credit for underserved segments. Recently, the company partnered with Klarna and issued its first $300 million bond backed by BNPL loans.
In its Q2 2025 earnings results, Pagaya Technologies Ltd. (NASDAQ:PGY) announced an EPS of $0.64, surpassing the forecasted $0.13, representing a surprise of 392.31%. Revenue also exceeded projections, reaching $326 million against an anticipated $311.96 million.
During the quarter, Pagaya Technologies Ltd. (NASDAQ:PGY) successfully recorded $2.3 billion across six ABS transactions and expanded its funding network by 10 new investors. The total funding partners currently stands at 145. Additionally, on July 14, 2025, the company entered a new forward flow agreement with Castlelake. The agreement sets a purchase of up to $2.5 billion in Personal Loans over 16 months, increasing capacity to approximately $5 billion since the end of 2024.
With a significant short float of 23.82% signaling elevated bearish bets, Pagaya Technologies Ltd. (NASDAQ:PGY) exudes a strong potential for a short squeeze if bullish momentum gains traction.
10. CompoSecure, Inc. (NASDAQ:CMPO)
Short Float: 24.63%
CompoSecure, Inc. (NASDAQ:CMPO) secures a position on our list of 11 best short squeeze stocks to buy now. Operating results in the second quarter exceeded expectations amid new launches from the company.
Based in New Jersey, CompoSecure, Inc. (NASDAQ:CMPO) designs and manufactures premium metal, composite, and secure authentication payment cards for banks, fintech, and global issuers. The company has shipped more than 30 million cards since 2010. Instead of focusing on security alone, the company incorporates aesthetics to ensure trusted transactions across physical and digital ecosystems.
CompoSecure, Inc. (NASDAQ:CMPO) announced strong top-line growth in Q2 2025, achieving record profitability, owing to domestic programs from traditional banks and fintech. Non-GAAP Net Sales increased by 10% reaching $119.6 million compared to Q2 2024. The company’s financial stability also benefits from improved manufacturing efficiencies from the CompoSecure Operating System (COS) and a favourable product mix.
During the quarter, the company has launched several customer-attractive programs, including those with Chase Sapphire Reserve, XP Legacy, Crypto.com, MGM Rewards, and Gemini. Furthermore, the Arculus team announced the new Coinbase One Card – the first crypto card on the American Express network. CompoSecure, Inc. (NASDAQ:CMPO) further raised its full-year 2025 guidance, targeting a total Non-GAAP Net Sales of approximately $455 million and Pro Forma Adjusted EBITDA of about $158 million.
The company’s 24.63% short float suggests significant bearish positioning. With currently emerging positive catalysts, the company stands to become a potential short squeeze opportunity.
9. Summit Therapeutics Inc. (NASDAQ:SMMT)
Short Float: 25.63%
Summit Therapeutics Inc. (NASDAQ:SMMT) earns a spot in our list of 11 best short squeeze stocks to buy now. Following mixed results in the clinical trial of Ivonescimab, the company entered a new clinical collaboration with Revolution Medicines.
The biopharma company, Summit Therapeutics Inc. (NASDAQ:SMMT) develops oncology therapies. Its lead candidate, Ivonescimab, targeting PD-1 and VEGF, is in clinical trials for non-small cell lung cancer. The Miami-based company currently holds regulatory collaborations for commercialization across multiple global regions.
On May 30, 2025, Summit Therapeutics Inc. (NASDAQ:SMMT) announced mixed results from the trial of its antibody treatment for lung cancer, Ivonescimab. In a comparison study, the drug had initially performed better than Merck’s Keytruda. But the latest evaluation revealed both promising and less favourable outcomes.
Later, on June 30, 2025, the company entered a new clinical collaboration with Revolution Medicines to evaluate combinations of three RAS(ON) inhibitors with Ivonescimab in RAS mutant tumours. The aim is to assess the safety and efficacy of these combinations across three priority tumour types, including RAS mutant non-small cell lung cancer (NSCLC), pancreatic ductal adenocarcinoma (PDAC), and colorectal cancer (CRC).
Initial study stands positive with evidence suggesting that Revolution Medicines’ inhibitors in combination with a PD-1 antibody can deliver additive antitumor activity safely in patients with RAS mutant NSCLC. This has created anticipation for further therapeutic benefits with novel PD-1 bispecific inhibitors like Ivonescimab.
With favorable developments triggering sharp upside movements, the company’s short float of 25.63% remains attractive to short-squeeze investors.
8. Viking Therapeutics, Inc. (NASDAQ:VKTX)
Short Float: 26.22%
Viking Therapeutics, Inc. (NASDAQ:VKTX) finds its way into our list of 11 best short squeeze stocks to buy now. The company plans to accelerate the oral formulation of VK2735 following Phase 2 results and has also initiated Phase 3 VANQUISH registration trials.
The clinical-stage biopharmaceutical firm, Viking Therapeutics, Inc. (NASDAQ:VKTX), based in San Diego, develops novel therapies for metabolic and endocrine disorders. The company’s pipeline includes GLP-1/GIP and thyroid hormone receptor beta agonists for obesity, NASH, fibrosis, and rare genetic conditions like X-ALD, with multiple programs advancing through Phase II/III trials.
On June 25, 2025, Viking Therapeutics, Inc. (NASDAQ:VKTX) announced the initiation of Phase 3 VANQUISH registration trials for its subcutaneous obesity therapy, VK2735. The Phase 2 VENTURE study has previously yielded positive top-line results. Following Phase 2, the Phase 3 program includes two studies: VANQUISH-1, targeting approximately 4,500 adults with obesity or who are overweight with at least one weight-related comorbidity, and VANQUISH-2, targeting approximately 1,100 adults with type 2 diabetes who are also obese or overweight. In both trials, the company will assess the efficiency and safety over 78 weeks.
Additionally, Viking also plans to accelerate the development of an oral formulation of VK2735, with results obtained from the previously initiated Phase 2. Oral VK2735 at a 40-mg dose resulted in a 3.3% reduction in mean body weight versus placebo, with an excellent safety profile, even at higher doses.
CNN noted a consensus Buy rating on the stock from 17 analysts. And with a 26.22% short float reflecting substantial short interest, Viking Therapeutics, Inc. (NASDAQ:VKTX) is gaining investor interest.
7. Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX)
Short Float: 28.69%
Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX) holds a rank in our list of 11 best short squeeze stocks to buy now. The company’s stocks surge following the approval of the U.S. FDA Priority Review for sNDA for Revuforj (revumenib).
Headquartered in Massachusetts, Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX) is a commercial-stage oncology company engaged in developing novel combination therapies for cancer. The lead products include Revumenib, a menin inhibitor for acute leukemia, and Niktimvo (axatilimab-csfr) for chronic graft-versus-host disease. Currently, the company’s clinical pipeline also looks into applications in solid tumors and inflammatory conditions.
On June 24, 2025, Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX) announced receiving a U.S. FDA Priority Review for its supplemental New Drug Application (sNDA) for Revuforj (revumenib) for the treatment of relapsed or refractory (R/R) mutant NPM1 (mNPM1) acute myeloid leukemia (AML). This sNDA, reviewed under the FDA’s Real-Time Oncology Review (RTOR) program, allows for a more efficient review and close engagement between the sponsor and FDA. The Prescription Drug User Fee Act (PDUFA) target action date is October 25, 2025.
Following the announcements, many analysts have reiterated their Buy rating on the stock. The 1-year median price target for the stock, as per CNN’s 12 analysts, is $35, a 169.85% uptick from its current closing price as of August 12, 2025. Also, the company’s stocks are vulnerable to sudden price surges on positive news, with an elevated short float of 28.69% that tends to heighten the risk for short sellers.
6. Novavax, Inc. (NASDAQ:NVAX)
Short Float: 29.12%
Novavax, Inc. (NASDAQ:NVAX) secures a spot among the list of 11 best short squeeze stocks to buy now. The company’s non-mRNA COVID-19 vaccine is approved, strengthening its Sanofi partnership.
Novavax, Inc. (NASDAQ:NVAX) is a biotechnology company focused on recombinant protein-based vaccines using nanoparticle and Matrix-M adjuvant technology. The Maryland-based company has an approved COVID-19 vaccine, Nuvaxovid, which is being commercialized globally through partnerships, including a major agreement with Sanofi. Currently, the company is expanding its product reach for emerging infectious disease prevention.
On May 19, 2025, Novavax, Inc. (NASDAQ:NVAX) announced that it had received U.S. FDA Biologics License Application (BLA) approval for Nuvaxovid™, a recombinant protein-based, non-mRNA COVID-19 vaccine. The BLA approval triggered a $175 million milestone payment from Sanofi.
Later, for select markets, Novavax, Inc. (NASDAQ:NVAX) has completed the transition of Nuvaxovid™ commercial leadership to Sanofi for the 2025-2026 COVID-19 vaccination season. By Q4 2025, the marketing authorization transfers to Sanofi for the U.S. and EU markets will be completed, which will result in an additional $50 million in combined milestones.
Additionally, in June 2025, initial cohort data from a Phase 3 trial for Novavax’s COVID-19-Influenza-Combination (CIC) and stand-alone influenza vaccine candidates showed significant immune responses, with T-cell responses numerically higher than the comparator Fluzone HD arm. With the results suggesting increased duration of protection, the company is discussing potential partnerships for these late-stage assets.
Novavax, Inc. (NASDAQ:NVAX)’s 29.12% short float signals heavy bearish sentiment. With it, the company is up on the stage for a sharp rebound with slight positive market sentiment shifts.
5. Eos Energy Enterprises, Inc. (NASDAQ:EOSE)
Short Float: 31.88%
Eos Energy Enterprises, Inc. (NASDAQ:EOSE) gains an entry into the list of 11 best short squeeze stocks to buy now. The company’s top executive makes a bold move as the company secures a loan and announces strong Q2 earnings.
Eos Energy Enterprises, Inc. (NASDAQ:EOSE), headquartered in New Jersey, carries on the business of designing and manufacturing zinc-based battery energy storage systems. The company’s client portfolio comprises utility-scale, microgrid, and commercial-industrial sectors. Its Znyth™ technology offers long-duration storage alternatives to lithium-ion batteries, thereby supporting grid resilience.
On July 1, 2025, the company secured a $22.7 million loan advance from the U.S. Department of Energy—the loan points to the second installment of a larger $90.9 million funding tranche. The aim behind the loan is to enhance the domestic manufacturing capabilities of Eos Energy Enterprises, Inc. (NASDAQ:EOSE), which would assist in addressing the increasing market demand for the company’s energy storage solutions.
Following the receipt of the loan, the company reported a record revenue increase of 122% quarter over quarter in its Q2 2025 earnings results. The earnings report also highlighted a growing commercial pipeline of $18.8 billion in value, with a significant rise in individual storage projects and data center opportunities.
Despite these positive developments, the company’s Director, Alexander Dimitrief, in a bold move, on August 5, 2025, sold 45,000 shares in a transaction valued at $270,000. The company has a short float of 31.88%, suggesting aggressive short positioning and an increased chance of a sturdy squeeze in bullish news.
4. Liquidia Corporation (NASDAQ:LQDA)
Short Float: 32.39%
Liquidia Corporation (NASDAQ:LQDA) holds a rank in our list of 11 best short squeeze stocks to buy now. Price targets raised by analysts following a favorable court ruling and receipt of funding under the HCR agreement.
Located in North Carolina, Liquidia Corporation (NASDAQ:LQDA) develops and commercializes treatments for rare cardiopulmonary diseases. With YUTREPIA™ (inhaled treprostinil powder) as its lead product, the company gained FDA approval for its use in the treatment of pulmonary arterial hypertension and pulmonary hypertension associated with interstitial lung disease. For targeted drug delivery, the company leverages proprietary PRINT® nanoparticle technology.
Following a favorable court ruling, Liquidia Corporation (NASDAQ:LQDA) commenced the first commercial sale of its pulmonary hypertension treatment, YUTREPIA™, and received an additional $50 million under its sixth amendment to its financing agreement (HCR Agreement) with Healthcare Royalty (HCRx).
Liquidia Corporation (NASDAQ:LQDA) has so far received a total of $175 million of the $200 million in potential funding, as per the HCR agreement terms. If the company manages an aggregate net sale of YUTREPIA of more than $100 million at any time on or prior to June 30, 2026, it could receive an additional $25million based on mutual agreement between the parties.
Following these developments, many analysts have raised the price target on the company’s stock. For instance, Bank of America recently raised the price target from $23 to $35, signaling a strong confidence in the company’s growth potential.
The short float of 32.39% creates a potential for rapid upside for Liquidia Corporation (NASDAQ:LQDA)’s shareholders, in the event of positive catalysts.
3. Applied Digital Corporation (NASDAQ:APLD)
Short Float: 32.70%
Applied Digital Corporation (NASDAQ:APLD) is also part of our list of 11 best short squeeze stocks to buy now. The company receives a strong Buy rating amid the positive Q4 2025 earnings results and bold sales from the company’s top executives.
Texas-based company, Applied Digital Corporation (NASDAQ:APLD), designs, builds, and operates next-generation digital infrastructure tailored for high-performance computing and AI workloads. The company’s focus is on offering purpose-built data center hosting, cloud services, and HPC solutions, among other services.
Applied Digital Corporation (NASDAQ:APLD) released its Q4 2025 earnings results on July 30, 2025. The report highlighted a 41% year-over-year revenue growth to $38 million during the quarter. Notably, the company has also secured a 15-year, $7 billion lease agreement with a major player in the AI data centre. With this contract, the company anticipates a significant stronghold in the high-performance computing sector. Applied Digital Corporation (NASDAQ:APLD) also announced its expansion plans to reach a 2GW capacity by 2026, thus gaining a positive outlook among potential investors.
In the weeks following the Q4 2025 earnings report, Applied Digital Corporation (NASDAQ:APLD)’s Directors were seen engaging in bold sales of the company’s stock. For instance, Douglas S. Miller and Richard Nottenburg sold 10,000 and 11,250 of the company’s shares, respectively. On the other hand, CNN recorded 9 analysts giving a consensus Buy rating on the stock, with an upside potential of 20.24%.
An intense short pressure is noticeable with the company’s short float of 32.70%, making the stock highly susceptible to sharp rallies if sentiment reverses.
2. Verastem, Inc. (NASDAQ:VSTM)
Short Float: 37.03%
Verastem, Inc. (NASDAQ:VSTM) secures a spot in our list of 11 best short squeeze stocks to buy now. The company progresses with its Phase 3 ovarian cancer trial while AVMAPKI FAKZYNJA CO-PACK generates revenue.
Verastem, Inc. (NASDAQ:VSTM), operating from its headquarters in Massachusetts, is a development-stage biopharmaceutical company. Its focus is on discovering and commercializing novel cancer therapies, particularly those targeting cancer stem cells and RAS pathway–based malignancies.
On August 8, 2025, Verastem, Inc. (NASDAQ:VSTM) announced an update Phase 3 study in ovarian cancer. The company is engaged in a Phase 3 clinical trial, RAMP 301, to test a new combination therapy for recurrent low-grade serous ovarian cancer (LGSOC).
It announced that the study will focus on assessing the safety and effectiveness of the oral drugs avutometinib and defactinib against standard treatments. It’s an open-label, randomized trial, and participants can switch to the new drugs if their disease progresses. The study, which began in March 2024, is crucial for exploring new treatment options for this challenging cancer. It has the potential to impact on the competitive environment in oncology.
Additionally, in its earnings call, Verastem, Inc. (NASDAQ:VSTM) also highlighted securing FDA approval for its AVMAPKI FAKZYNJA CO-PACK nearly two months ahead of schedule. With this approval, the company enters the first-ever treatment for KRAS-mutated recurrent low-grade serous ovarian cancer (LGSOC). The product helped generate $2.1 million in net product revenue within just six weeks of its launch.
The company has a short float of 37.03%, suggesting elevated bearish bets that position the stock for significant gains if a bullish trigger were to materialize.
1. Rocket Companies, Inc. (NYSE:RKT)
Short Float: 58.38%
Rocket Companies, Inc. (NYSE:RKT) ranks as one of the 11 best short squeeze stocks to buy now. The company surpassed Q2 expectations and has bolstered expectations for its Redfin acquisition and pending COOP transaction.
Rocket Companies, Inc. (NYSE:RKT) is a leading fintech platform delivering mortgage lending, real estate brokerage, personal finance, and homeownership solutions. The Michigan-based company’s ecosystem includes Rocket Mortgage, Rocket Homes, Rocket Close, and Rocket Money. Its business model involves leveraging AI to streamline the homebuying and financial management experience.
On July 31, 2025, the company reported achieving an EPS of $0.04 that surpassed the analysts’ expectations of $0.03 in its Q2 earnings results. Additionally, Rocket Companies, Inc. (NYSE:RKT)’s revenue reached $1.36 billion, exceeding the projected $1.28 billion, further garnering positive attention from investors.
In addition to this, Rocket Companies, Inc. (NYSE:RKT) is anticipated to close the COOP transaction in the fourth quarter of 2025, thus eliminating elevated transaction-related expenses that negatively impacted the company’s second-half 2025 earnings. Also, the acquisition of Redfin, completed on July 1, 2025, brought a positive outlook to the company as the combination of the most-visited real estate brokerage website and the U.S.’s largest mortgage lender is expected to improve efficacy.
With a short float of 58.38%, Rocket Companies, Inc. (NYSE:RKT) potentially has extreme short interest. However, the stock attracts investor interest as it is subject to a dramatic squeeze in positive momentum.
While we acknowledge the potential of RKT 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 RKT and that has 100x upside potential, check out our report about this cheapest AI stock.
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