Top Industrial Goods Short-Squeeze Plays
One sector that has turned up some high short interest is the industrial goods sector, which includes everything from aerospace to building materials to farm machinery to manufactured housing to waste management.
The primary metric for measuring short interest is the short ratio, which is the number of days it would take for short-sellers to cover their bearish positions, based on the recent daily volume of shares traded. The short ratio can be used to find short-squeeze plays, whereby on any unexpected good news, a stock that is heavily shorted can spike upward.
With that in mind, Stockpickr has put together the Top Industrial Goods Short-Squeeze Plays, a list of industrial-goods stocks with very high short ratios.
A stock on the list with one of the highest short ratios is Heico (HEI), a Florida-based company that makes and markets aerospace, defense and electronics-related products.The stock has a high short ratio of 29.7. The company just reported fiscal fourth-quarter earnings of 40 cents a share, up from 35 cents a share a year ago. This increase was primarily because of significant sales in its flight-support division. The stock has a price-to-earnings ratio of 37, a P/E-to-growth (PEG) ratio of 1.7, and pays a small yield of 0.2%. Heico also shows up in the Stockpickr portfolio called MSN Money 40 Best Technicals, which contains exactly what it says, the top 40 technical stocks according to MSN Money. Other stocks in this portfolio include Agco (AG), with a short ratio of 2.5, Affiliated Managers Group (AMG), at a 15.8 short ratio, and Healthways (HWAY), with a 26.3 short ratio.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV