5 Best Short Squeeze Stocks to Buy Now

2. Big Lots, Inc. (NYSE:BIG)

Number of Hedge Fund Holders: 14

Short Interest as of September 14: 61.55%

Big Lots, Inc. (NYSE:BIG) operates as a discount home goods retailer in the United States. For the second quarter of 2022, the company posted a non-GAAP loss per share of 2.28 and a revenue of $1.35 billion, topping market estimates by $0.19 and $10 million, respectively. The revenue declined 7.5% on a year-over-year basis. Comparable sales dropped 9.2% in Q2 2022. It is one of the best short squeeze stocks to buy now, with shorted float reaching 61.5% as of September 14. 

On September 16, JPMorgan analyst Matthew Boss raised the price target on Big Lots, Inc. (NYSE:BIG) to $9 from $8 and kept an Underweight rating on the shares. The analyst established December 2023 price targets across his coverage. Consumer and retail CEOs remain “tempered” on H2 2022 expectations given the difficult macroeconomic environment, but almost every company showed signs of “improvement” in August compared to June levels, the analyst told investors in a research note.

According to Insider Monkey’s data, 14 hedge funds were long Big Lots, Inc. (NYSE:BIG) at the end of Q2 2022, compared to 12 funds in the previous quarter. Mill Road Capital Management is the leading stakeholder of the company, with 1.5 million shares worth $30.6 million.