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As investors put the finishing touches on their 2023 trades and prep for 2024, a screen of the stocks with the highest quant ratings and also an elevated level of short interest leads to a list of names that could see some volatility. On the one hand, the stocks with the highest quant ratings have beat the S&P 500 Index in 12 straight years, but a risk-on market sentiment over the last few weeks has the short crowd circling for overvalued names. The stocks listed below all have a Seeking Alpha Quant rating of Buy or Strong Buy, and a short interest level of over 25% of the total float. Something will have to break eventually.
Carvana Co (NYSE:CVNA) – Shares of CVNA are 3% higher over the last week and are up 1,082% on a year-to-date basis. The auto retailer has strong quant factor grades for earnings revisions and momentum. Carvana (CVNA) trades with a lower price-to-sales ratio than the average in the auto retail sector. Short interest is at 38.7% of total float.
World Acceptance Corporation (NASDAQ:WRLD) – Shares of WRLD are down 2% over the last week and are up 103% on a year-to-date basis. The consumer finance company has strong quant factor grades for growth and momentum. Wall Street analysts are bearish on WRLD. Short interest is at 33.6% of total float.
Twist Bioscience Corporation (NASDAQ:TWST) – Shares of TWST are up 6% over the last week and are 54% higher on a year-to-date basis. The biotech company has strong quant factor grade for earnings revisions. The stock has attracted mostly bull ratings from Wall Street analysts. Short interest is at 29.0% of total float.
Tango Therapeutics (TNGX) – Shares of TGNX are down 5% over the last week and are 37% on a year-to-date basis. The the biotech company has strong quant factor grades for earnings revisions and momentum. All six Wall Street firms with rating on TNGX are in the bull camp. Short interest is at 27.1% of total float.
Sovo Brands (NASDAQ:SOVO) – Shares of SOVO are up 1% over the last week and are up 60% in 2023. The packaged food company has strong quant factor grades for growth, EPS revisions and momentum. Some traders are betting on whether or not the deal with Campbell Soup (CPB) will close. Short interest is at 27.0% of total float.
Nkarta (NKTX) – Shares of NKTX soared 45% over the last week, but are still down 23% on a year-to-date basis. The clinical-stage biopharmaceutical company has strong quant factor grades for valuation, growth, and momentum. Wall Street analyts are also bullish on NKTX. Short interest is at 26.9% of total float.
ImmunityBio (IBRX) – Shares of IBRX are up 1.5% over the last week to pare the year-to-date loss to 6%. The clinical-stage biotechnology company has strong quant factor grades for growth, EPS revisions, and momentum. IBRX has the strongest projected growth rate of the names on the list. Short interest is at 26.4% of total float. Of special interest, insiders own more than 44% of the total shares outstanding, which could add to the volatility.
ORIC Pharmaceuticals(ORIC) – Shares of ORIC gained 2.3% over the last week and are 48% higher on a year-to-date basis. The clinical-stage biopharmaceutical company has sa trong quant factor grade for momentum. Wall Street analysts are also bullish on ORIC. Short interest is at 26.3% of total float.
Applied Optoelectronics (AAOI) – Shares of AAOI fell 6.3% over the last week, but have skyrocketed 1,026% on a year-to-date basis. The manufacturer of fiber optic networking products has strong quant factor grades for growth, EPS revisions and momentum. Seeking Alpha analysts have warned on valuation and the track for profitability for the company. Short interest is at 25.8% of total float.
Cinemark Holdings (CNK) – Shares of CNK fell 6.2% over the last week to cut into the +60% year-to-date rally. The movie theater stock has strong quant factor grades for EPS revisions and momentum. Wall Street and Seeking Alpha analysts are also bullish on CNK, although the very latest projections for the 2024 box office have been underwhelming. Short interest is at 25.5% of total float.
See a list of the stocks with the very highest Seeking Alpha Quant Ratings
