5 Best Short Squeeze Stocks to Buy Now

Below we present the list of 5 Best Short Squeeze Stocks to Buy Now. For our methodology and a more comprehensive list please see 12 Best Short Squeeze Stocks to Buy Now.

5. Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT)

Number of Hedge Fund Shareholders: 22

Short Interest: 33.7%

Days to Cover: 13.1

There was a surge in hedge fund ownership of Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) during the third quarter of 2022, as the number of smart money shareholders of the company nearly doubled. The majority of new positions were on the small side however, though Bihua Chen’s Cormorant Asset Management did add 1 million ARQT shares to its 13F portfolio during the quarter.

Analysts are extremely bullish on Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT), which is working on treatments for various skin disorders, based on their price targets on the stock. TD Cowen has a $65 price target on ARQT shares, while Mizuho’s price target stands at $57. Morgan Stanley also has a $47 price target and ‘Overweight’ rating on the stock.

Given that Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) shares currently change hands for less than $10, those are significant projections. Even Truist, which recently scaled back its projections for sales of Arcutis’ psoriasis treatment Zoryve to $31 million this year and $125 million next year from earlier projections of $40 million and $157 million respectively, has a $40 price target on Arcutis.