This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs