In this article, we will take a look at the 11 Most Shorted Stocks to Buy According to Analysts.
Although holes are starting to form, the stock market doesn’t seem to be in danger of crashing just yet, with the S&P 500 down only 1% from its record high. Nonetheless, sentiment has been particularly shaky in software and cybersecurity stocks this year due to concerns about the rapidly evolving capabilities of AI tools that could disrupt established software companies’ operations. Moving forward into the last week of February, the S&P 500 software sub-index lost $1.2 trillion in total market capitalization in just under a month, plunging to its lowest point since the ensuing aftermath of President Trump’s “liberation day” tariff decisions in April 2025.
Meanwhile, the S&P 500 utilities sub-index is up 10%, while energy stocks are up 22%, as industries with significant tangible assets regain popularity after years of stagnation relative to asset-light technology companies.
In such an unpredictable market environment, short sellers are regaining relevance, according to Dan Loeb of Third Point LLC, as openings emerge to take risks against the bloated trades that have hammered market detractors for years.
In the face of the unrelenting US bull market, regulatory risks, and the rise of erratic retail traders, the short-selling space has been getting narrower. However, Loeb claims this has created an opportunity, as the tech giants who have driven the market higher are struggling to get started in 2026.
Our Methodology
For this list, we used stock screeners to identify stocks with significant short interest. From that list, we primarily chose stocks with a short float of 20% or above. Short float % (Short Interest as % of Float) measures the percentage of a company’s publicly tradable shares that have been sold short by investors. We then narrowed the list to 11 stocks most popular among elite hedge funds and that analysts were bullish on (at least 20% upside).
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
11. Centrus Energy Corp. (NYSE:LEU)
Centrus Energy Corp. (NYSE:LEU) ranks among the most shorted stocks to buy according to analysts. On February 11, William Blair reaffirmed an Outperform rating on Centrus Energy Corp. (NYSE:LEU), retaining a favorable outlook on the company amid mixed quarterly results. William Blair stated that the company’s performance and flat 2026 outlook came short of projections, citing the timing of historical SWU contracts and existing mark-to-market uranium price trends.
Although the firm acknowledged that it was taken aback by the Centrus Energy import/broker trading division’s fluctuation during the quarter, it proposed that this segment’s performance be assessed on a full-year basis rather than a quarterly basis.
Additionally, Centrus Energy Corp. (NYSE:LEU) announced it will spend more than $560 million to expand its Oak Ridge uranium enrichment centrifuge manufacturing plant. With the first centrifuges expected to be operating by 2029, this development is anticipated to turn the property into a high-rate manufacturing facility.
Centrus Energy Corp. (NYSE:LEU) is a Maryland-based supplier of nuclear fuel components and services that operates under two business categories: Low-Enriched Uranium and Technical Solutions.
10. Birkenstock Holding plc (NYSE:BIRK)
Birkenstock Holding plc (NYSE:BIRK) ranks among the most shorted stocks to buy according to analysts. Birkenstock Holding plc (NYSE:BIRK) revealed its Q1 FY26 financial results on February 12, posting an adjusted EPS of €0.27, exceeding analyst projections of €0.26 and showing a 50% rise year-over-year. On the other hand, the company’s adjusted gross profit margin fell by 290 basis points to 57.4%, owing to negative currency impacts and higher US tariffs.
With revenue rising 18% to €215 million, the company’s B2B channel showed noteworthy growth. Birkenstock’s B2B channel experienced particularly significant development, boosting revenue by 18% to €215 million. Meanwhile, direct-to-consumer (DTC) revenue climbed by a somewhat mild 4% to €186 million, all while DTC penetration jumped by 300 basis points to 46%.
During the earnings call, CEO Oliver Reichert highlighted the company’s emphasis on full-price selling, which is still “very high, over 90%.” With the opening of nine more stores in Q1, the company is also expanding its retail footprint.
Birkenstock Holding plc (NYSE:BIRK) is a holding company for the global footwear brand Birkenstock, which is well-known for its closed-toe shoes, sandals with anatomical footbeds, skincare products, and accessories.
9. ImmunityBio, Inc. (NASDAQ:IBRX)
ImmunityBio, Inc. (NASDAQ:IBRX) ranks among the most shorted stocks to buy according to analysts. H.C. Wainwright maintained a Buy rating for ImmunityBio, Inc. (NASDAQ:IBRX) and increased its price target to $15 from $10 on February 23. According to the firm, following ANKTIVA’s U.S. introduction in 2025, ImmunityBio, Inc. (NASDAQ:IBRX) reported that the medication brought in $113 million.
The company also saw a 750% increase in unit sales, with Q4 revenue of $38.3 million, up 20% from the third quarter. Moreover, ImmunityBio, Inc. (NASDAQ:IBRX) has broadened its global reach by teaming with Biopharma and Cigalah Healthcare to commercialize ANKTIVA in Saudi Arabia and the MENA area, after regulatory clearance from the Saudi Food and Drug Authority.
At the same time, ImmunityBio, Inc. (NASDAQ:IBRX) is conducting randomized studies in BCG-naïve non-muscle-invasive bladder cancer. The company plans to submit a Biologics License Application in the fourth quarter of 2026.
ImmunityBio, Inc. (NASDAQ:IBRX) is a U.S. biotechnology company developing next‑generation immunotherapies and vaccines that enhance the natural immune system to fight cancers and infectious diseases.
8. Applied Digital Corp. (NASDAQ:APLD)
Applied Digital Corp. (NASDAQ:APLD) ranks among the most shorted stocks to buy according to analysts. On February 12, Citizens reiterated its Market Outperform rating on Applied Digital Corp. (NASDAQ:APLD) accompanied by a $40 price target. The firm emphasized Applied Digital’s 400 MW of specially designed capacity at the North Ellen (Polaris Forge 1) facility, which has been fully contracted to CoreWeave. The first 100MW went into operation in November 2025, with 150MW anticipated for mid-2026 and the final 150MW projected in 2027.
Citizens noted that Applied Digital Corp. (NASDAQ:APLD) has a 4.3GW active development pipeline, making it one of the most important HPC/AI infrastructure suppliers in North America.
The firm estimates that Applied Digital’s 4.3GW development pipeline may potentially increase shareholder value by about $124 per share, with the expanded pipeline potentially producing more than 5GW of power.
Applied Digital Corp. (NASDAQ:APLD) is a specialist data center company that designs, develops, and operates sophisticated digital infrastructure throughout North America. The company offers digital infrastructure solutions for blockchain mining operations, as well as GPU computing solutions for essential AI and HPC workloads.
7. TeraWulf Inc. (NASDAQ:WULF)
TeraWulf Inc. (NASDAQ:WULF) ranks among the most shorted stocks to buy according to analysts. On February 12, Citizens reiterated its Market Outperform rating on TeraWulf Inc. (NASDAQ:WULF) and set a $22 price target on the company’s shares, citing TeraWulf’s plan for capitalizing on its upstate New York facilities to provide hyperscale data center capacity at considerably more affordable power rates as opposed to conventional markets.
In order to validate market demand and bolster its customer base, Citizens pointed out that TeraWulf Inc. (NASDAQ:WULF) obtained a number of high-performance computing arrangements, such as leases with private companies Core42 and FluidStack, as well as a joint venture targeted at extending scale.
TeraWulf Inc. (NASDAQ:WULF) stated that it aims to lease 250 to 500 megawatts of capacity each year, with a 3 gigawatt development stream expected over the coming five years. Based on these estimates, Citizens contends that this pipeline has the potential to unlock about $85 per share value for investors over the long run.
TeraWulf Inc. (NASDAQ:WULF) is an American digital infrastructure company that develops, owns, and operates data centers for high-performance computing (HPC), artificial intelligence (AI) applications, and proprietary Bitcoin mining.
6. Immunovant, Inc. (NASDAQ:IMVT)
Immunovant, Inc. (NASDAQ:IMVT) ranks among the most shorted stocks to buy according to analysts. On February 6, Immunovant, Inc. (NASDAQ:IMVT) released its Q3 2025 results, reporting a smaller-than-anticipated quarterly loss of -$0.61 per share, surpassing consensus projections of -$0.72 by $0.11.
The quarter’s net loss of $110.6 million was slightly higher than the $111.1 million for the same period a year earlier. Moreover, while general and administrative costs fell to $15.4 million from $19.8 million year-over-year, the company’s R&D expenditures rose to $98.9 million from $94.5 million.
Immunovant, Inc. (NASDAQ:IMVT) anticipates receiving topline findings in the latter half of 2026 from its proof-of-concept trial in cutaneous lupus erythematosus as well as its IMVT-1402 trial in rheumatoid arthritis. Furthermore, the company expects to release data from its Phase 3 trials of batoclimab for thyroid eye disease in the first half of this year.
Following the results, multiple analysts reiterated their views but raised price targets. Among them was Guggenheim analyst Yatin Suneja, who raised his target from $41 to $44 on February 9. In addition, Truist analyst Danielle Brill also reiterated a Hold rating on the stock but raised the target to $23 from $22.
Immunovant, Inc. (NASDAQ:IMVT) is a clinical-stage immunology company focused on developing innovative therapies for autoimmune diseases. The company’s primary focus is on creating anti-FcRn (neonatal Fc receptor) antibodies, which aim to reduce harmful immunoglobulin G (IgG) autoantibodies in patients with various autoimmune conditions.
5. Hinge Health, Inc. (NYSE:HNGE)
Hinge Health, Inc. (NYSE:HNGE) ranks among the most shorted stocks to buy according to analysts. On February 11, following the company’s fourth-quarter 2025 results, Truist Securities reaffirmed its Buy rating on Hinge Health, Inc. (NYSE:HNGE) and set a price target of $63 on the company’s shares. Analyst Jailendra Singh retained an upbeat assessment after a post-quarterly discussion with Hinge Health’s management to evaluate its financial results and future potential. The exact details of the firm’s discussions with the management weren’t made public.
The company generated earnings per share of $0.49, 250% higher than the expected $0.14, along with revenues of $171 million, a 46% year-over-year increase. Truist cited “multiple upside drivers to an already strong 2026 guidance” in its evaluation of Hinge Health’s position, implying optimism regarding the company’s forward-looking expectations.
Hinge Health, Inc. (NYSE:HNGE) is a musculoskeletal digital clinic that offers personalized physical therapy and pain management programs through a combination of wearable sensors, app-based coaching, and licensed clinical care.
4. Hims & Hers Health, Inc. (NYSE:HIMS)
Hims & Hers Health, Inc. (NYSE:HIMS) ranks among the most shorted stocks to buy according to analysts. Following Novo Nordisk’s lawsuit against Hims & Hers Health, Inc. (NYSE:HIMS), Canaccord Genuity lowered its price target for the telehealth firm from $68 to $30 on February 10, retaining a Buy rating on HIMS shares. Novo claimed that the “unlawful mass marketing” of its semaglutide medications in unapproved forms constituted patent infringement. The lawsuit comes after Hims & Hers Health, Inc. (NYSE:HIMS) made a brief announcement and then changed its position on compounded oral semaglutide being available on its marketplace.
Additionally, the FDA has declared its intention to limit the use of GLP-1 active pharmaceutical ingredients in non-FDA-approved compounded medications widely distributed by companies, specifically Hims & Hers Health, Inc. (NYSE:HIMS). According to analyst Maria Ripps, though the lawsuit increases operational risk, the firm is not yet changing its estimates.
Hims & Hers Health, Inc. (NYSE:HIMS) is a consumer-focused telehealth company. It provides personalized healthcare and wellness services through a digital platform that connects patients with licensed medical professionals. The company offers treatments across various categories, including sexual health, mental health, dermatology, and primary care.
3. Bitdeer Technologies Group (NASDAQ:BTDR)
Bitdeer Technologies Group (NASDAQ:BTDR) ranks among the most shorted stocks to buy according to analysts. On February 13, Needham reduced its price target for Bitdeer Technologies Group (NASDAQ:BTDR) to $22 from $30 while retaining a Buy rating on the company’s shares. The revision comes after Bitdeer’s Q4 results, which showed revenue above estimates, though adjusted EBITDA fell short.
Needham predicts Bitdeer Technologies Group (NASDAQ:BTDR) will sign a lease at its Tydal plant over the next two to five months, with lower capital expenditures than typical build-outs. Tydal refit completion is scheduled at the close of 2026, with test GPUs likely towards the end of the year.
The firm also stated that lawsuits involving Bitdeer’s Clarington location add ambiguity over whether an HPC tenant can be adequately evaluated, though Needham says there are potential answers to the issue.
Moreover, Needham issued 2027 estimates for Bitdeer Technologies Group (NASDAQ:BTDR), which include 150MW of colocation revenue, with the price target reduced to reflect weaker Bitcoin rates, rising costs, and higher levels of uncertainty at US sites.
Bitdeer Technologies Group (NASDAQ:BTDR) is a global tech company specializing in Bitcoin mining and AI cloud services, offering end-to-end solutions including datacenter management, hash rate sharing, and proprietary mining.
2. Soleno Therapeutics (NASDAQ:SLNO)
Soleno Therapeutics (NASDAQ:SLNO) ranks among the most shorted stocks to buy according to analysts. On February 25, Soleno Therapeutics (NASDAQ:SLNO) posted strong financial results for the fourth quarter of 2025, exceeding Wall Street estimates with EPS of $0.80, up from $0.61. Revenue also exceeded expectations, totaling $91.7 million compared to an expected $82.45 million, representing an 11.26% increase.
Following the earnings report, TD Cowen analyst Tyler Van Buren reduced the price target for Soleno Therapeutics (NASDAQ:SLNO) to $85 from $120 while maintaining a Buy rating. According to the firm, Soleno experienced a solid Q4, producing $190 million in revenue from just nine months of Vykat XR sales, and ended 2025 financially viable.
Management also maintained a strong commercial trajectory for 2026, with about 1,000 new start forms expected over the next 9-12 months.
Soleno Therapeutics (NASDAQ:SLNO) is a clinical-stage biopharmaceutical company developing novel therapies for rare diseases, including Prader-Willi Syndrome.
1. Viking Therapeutics, Inc. (NASDAQ:VKTX)
Viking Therapeutics, Inc. (NASDAQ:VKTX) ranks among the most shorted stocks to buy according to analysts. After the company’s fourth-quarter 2025 earnings report, Raymond James maintained its Strong Buy rating on Viking Therapeutics, Inc. (NASDAQ:VKTX) but cut its price objective from $122 to $118 on February 12. The company highlighted its optimistic outlook for Viking’s oral VK2735 and advanced clinical subQ initiatives in the obesity treatment market, along with its novel amylin agonist, which is expected to start clinical trials later this year.
Viking Therapeutics, Inc. (NASDAQ:VKTX) stated that it is expecting topline data from its maintenance trial and the start of the Phase 3 program for oral VK2735 in the third quarter of 2026. The company additionally wrapped up its bioequivalence research and intends to add an autoinjector VK2735 format to the VANQUISH initiative during the first quarter of 2026.
Viking Therapeutics, Inc. (NASDAQ:VKTX) is a clinical-stage biopharmaceutical company developing treatments for metabolic and endocrine disorders, including obesity, NASH, and rare diseases such as X-linked adrenoleukodystrophy (X-ALD).
While we acknowledge the potential of VKTX 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 VKTX and that has 100x upside potential, check out our report about this cheapest AI stock.
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