In this article, we will discuss the 12 Most Shorted Stocks to Buy in 2026.
Franklin Templeton expects real GDP growth in 2026 to be 2.5%, above the US Fed’s forecast of 2.3% and the consensus estimate of ~2%. As per the firm, continued capex spend by big technology firms, resilient consumer, and increased tax refunds, and the probability of future cuts in rates are expected to help achieve growth in GDP.
The US Fed is expected to cut short-term interest rates twice in 2026, added Franklin Templeton, while the core personal consumption expenditures (PCE) should remain stable at 2.5% – 3.0% range. Overall, the investment firm is optimistic about US equities, setting a target range of 7,000-7,400 for the S&P 500. This is expected to stem from 8% – 13% YoY growth in EPS.
The expectations for inflation increased over the near term, with 1-year breakeven rates now coming at 4.22%. Finally, on the currency front, the investment firm expects the US dollar to be essentially flat for the year despite the volatility.
Amidst such trends, we will now have a look at the 12 Most Shorted Stocks to Buy in 2026
Our Methodology
To list the 12 Most Shorted Stocks to Buy in 2026, we used a screener to shortlist the stocks that have a short interest exceeding 20% of the float. Next, we chose the ones popular among hedge funds, as of Q4 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 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).
12 Most Shorted Stocks to Buy in 2026
12. EchoStar Corporation (NASDAQ:SATS)
EchoStar Corporation (NASDAQ:SATS) is one of the 12 Most Shorted Stocks to Buy in 2026. On March 3, UBS analyst John Hodulik lifted its price objective on the company’s stock to $127 from $125 while maintaining a “Neutral” rating, as reported by The Fly.
As per the analyst, the Q4 2025 results were mixed as Pay TV declines continue to accelerate. Wireless losses improved amidst EchoStar Corporation (NASDAQ:SATS) transitioning to an MVNO-focused strategy. The firm added that focus is on the value of non-operating assets, which include the SpaceX stake, the remaining spectrum holdings, etc.
In a different update, EchoStar Corporation (NASDAQ:SATS) reported FY 2025 results, with net loss totaling $14.50 billion as compared to $119.55 million in the prior year. This was mainly because of non-cash asset impairments and other expenses of ~$17.63 billion. The company’s net pay-TV subscribers fell by ~168,000 in Q4 2025 as compared to a decline of ~253,000 in the year-ago quarter.
EchoStar Corporation (NASDAQ:SATS) is a fully integrated global communications and content delivery leader, which provides technology, spectrum, engineering, manufacturing, networking services, television entertainment and connectivity.
11. IonQ, Inc. (NYSE:IONQ)
IonQ, Inc. (NYSE:IONQ) is one of the 12 Most Shorted Stocks to Buy in 2026. On March 10, the company announced a collaboration with the Applied Research Laboratory for Intelligence and Security (ARLIS). This collaboration revolves around SEQCURE (i.e., Securing Experimental Quantum Computing Usage in Research Environments). The program is being sponsored by the Secretary of the Air Force’s Concepts, Development, and Management Office.
The collaboration focuses on advancing the present of quantum computing security. This will be done through analyzing existing commercial quantum computing security practices with the target of understanding how to deploy Zero Trust Architecture (ZTA) to future quantum computers.
IonQ, Inc. (NYSE:IONQ) plans to help ARLIS in defining a ZTA framework, considering the standards placed by the National Institute of Standards and Technology (NIST). The collaboration builds on IonQ, Inc. (NYSE:IONQ)’s growing portfolio of federal partnerships, such as existing contracts with ARLIS, DARPA and the US Air Force Research Lab (AFRL). This demonstrates the company’s leadership in developing the world’s most complete quantum platform.
We recently covered that IonQ (IONQ) achieves record 2025 growth, you can read that update here.
