5 Best Short Squeeze Stocks to Buy Now

4. Plug Power, Inc. (NASDAQ:PLUG)

Number of Hedge Fund Shareholders: 23

Short Interest: 52.8%

Days to Cover: 5.7

Short sellers may not think much of Plug Power, Inc. (NASDAQ:PLUG)’s valuation at the moment, but it’s a different story with analysts. We recently ranked PLUG as one of the 5 Most Promising EV Stocks According to Analysts, with the stock having greater than 90% upside potential to analysts’ average price targets on the stock as of February 14.

Hedge funds have been torn on Plug Power, Inc. (NASDAQ:PLUG) in recent quarters, with their ownership of the stock fluctuating wildly between quarters. Hedge funds steadily bought into the company between 2019 and the first quarter of 2022, but the number of smart money shareholders has since fallen by 32%.

One of the biggest issues with Plug Power, Inc. (NASDAQ:PLUG) is that the company has failed to generate positive cash flow for over two decades and its rate of cash burn has increased significantly in the past couple years. That trend continued in Q1, as while PLUG grew revenue by 49% year-over-year, it still widely missed earnings estimates, losing $0.35 per share during the quarter. And despite the strong revenue growth, the company’s full year revenue guidance also came in below estimates.