In this article, we will discuss the 14 Best 52-Week High Stocks to Invest In According to Short Sellers.
US stock markets have been on a tear, extending last year’s rally and powering to record highs. Investors looking past geopolitical turmoil and inflation fears have been the catalyst behind some stocks powering to or above their 52-week highs, erasing most of the losses incurred at the start of the Iran war.
Developed markets have also demonstrated strong patterns amid rising optimism in equity markets, even as macroeconomic concerns put pressure on bonds. According to Bank of America, equity allocations reached a record high in May. Fund Managers shifted from being 13% net overweight in equities in April to 50% net overweight.
Barclays, in its research note, points to the fastest rebound in decades, with US equity funds recording net new inflows of $70 billion over 7 weeks.
Barclays analysts state, “Foreign demand for U.S. equities is accelerating amid persistently high oil prices.” Year-to-date U.S. equity fund inflows are tracking at $180 billion, over twice the five-year median. They add, “With portfolios fully invested and macro headwinds growing, near-term unwind risk has materially increased.”
Analysts at Deutsche Bank expect the resilience seen in equity markets to persist, as there are no conditions that would trigger a more aggressive sell-off. According to the analysts, sustained oil shocks and economic data in contractionary territory would be needed to accelerate the market selloff.
Deutsche Bank notes, “So far, it’s tough to argue we have any of these,” referring only to the ‘sustained’ oil shock, as markets anticipate a long period of high oil prices.
Amid strong bullish sentiment in markets, some stocks are trading near their 52-week highs amid reduced short-selling pressure. With the bullish run still in play, the best 52-week high stocks to invest in, according to short sellers, look set to outperform.
Our Methodology
To compile the list of Best 52-Week High Stocks to Invest In According to Short Sellers, we first screened for stocks that were trading near their 52-week highs (0-10% range) using the Finviz stock screener. Next, we settled on stocks with a short % of Float of less than 4% and a short ratio of less than 5. We also detailed the number of hedge funds holding stakes in the stocks in Q4 2025. The stocks are ranked in descending order by their short interest rate.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows 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).
Best 52-Week High Stocks to Invest In According to Short Sellers
14. Dow Inc. (NYSE:DOW)
Short Float: 3.50%
Short Ratio: 1.79
52 Week Range: $20.40 – $42.74
Current Share Price: $36.94
Number of Hedge Fund Holders: 49
Dow Inc (NYSE:DOW) is one of the best 52-week high stocks to invest in, according to short sellers. On May 18, Dow Inc (NYSE:DOW) secured a significant regulatory win on its nuclear project in Seadrift, Texas, in partnership with X-energy.
The US Nuclear Regulatory Commission completed its Environmental Assessment of the project and issued a Finding of No Significant Impact. The conclusion is a significant milestone that paves the way for Dow and its partner to advance the Construction Permit Application for the Long Mott Generating Station. Once complete, the project will provide electricity and high-temperature industrial steam to Dow’s UCC Seadrift Operations.
Earlier, Dow and RDM Group unveiled a Multiboard Circular RR that advances circularity in food barrier packaging. The solution is suitable for food-contact applications, including frozen foods as well as dry pet food. It draws on expertise in fiber-based packaging, with Dow’s leadership in circular polymers and advanced recycling technologies.
Dow Inc. (NYSE:DOW) is a global materials science and chemical manufacturing company. It transforms raw materials, such as hydrocarbons and minerals, into essential plastics, chemicals, and other synthetic materials for everyday items, industrial applications, packaging, mobility, and infrastructure.
13. The Allstate Corporation (NYSE:ALL)
Short Float: 2.66%
Short Ratio: 4.58
52 Week Range: $188.08 – $227.62
Current Share Price: $222.72
Number of Hedge Fund Holders: 56
The Allstate Corporation (NYSE:ALL) is one of the best 52-week high stocks to invest in according to short sellers. On April 29, The Allstate Corporation (NYSE:ALL) reiterated its robust strategy and execution capabilities resulting in strong earnings and growth in policies.
Total revenues increased 3% to $16.9 billion in the quarter as net income attributable to shareholders increased to $2.4 billion compared to $566 million generated the same quarter last year. Adjusted net income also increased to $2.8 billion or $10.65 per diluted share compared to $949 million in the prior year quarter.
The better-than-expected results came on Policies in force, reaching 212 million, reflecting increased growth in auto and homeowners insurance and Protection Plans. The ratio improved to 82 from 97.4, driven by lower catastrophe losses and higher average earned premiums. Catastrophe losses nearly halved to $1.2 billion from $2.2 billion in the first quarter of last year.
The Allstate Corporation (NYSE:ALL) is one of the largest publicly held personal lines insurers in the United States, operating through a network of local agencies and digital platforms. The company primarily provides auto, home, and business insurance.
