5 Most Shorted Mid-Cap and Small-Cap Stocks to Buy Now

4. Bob’s Discount Furniture Inc. (NYSE:BOBS)

Short Float: 22.44%

Market Cap: $1.72 Billion

Stock Upside Potential: 56.93%

Number of hedge fund holders: 35

Bob’s Discount Furniture Inc. (NYSE:BOBS) is one of the most shorted mid-cap and small-cap stocks to buy now. On May 7, DA Davidson reiterated a Buy rating on Bob’s Discount Furniture Inc. (NYSE:BOBS)  but lowered the price target to $22 from $24.

The new price target, which comes after the company delivered better-than-expected quarterly results, is 10 times the furniture retailer’s 2027 EBITDA estimate. The research firm remains bullish about the company’s long-term outlook. The Buy rating is impressed by the push for share gains and growth in new markets.

DA Davidson has also touted merchandising initiatives at the back of a push for higher-end products. Omnichannel success and margin improvements also underscore improvements from early-year storm pressures. However, the research firm is still wary of risks that remain around housing conditions.

In the first quarter, Bob’s Discount Furniture achieved earnings per share of $0.09, in line with analyst expectations. As revenues increased 8.5% year over year to $578.1 million.

Bob’s Discount Furniture Inc. (NYSE:BOBS) is a large-scale American home furnishings retailer that operates over 200 showrooms across 27 U.S. states. The company sells affordable living room, bedroom, and dining room furniture, as well as mattresses and home decor.