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Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stomp the S&P With 5 Hated Stocks Ready to Pop

Stocks in this article: ASML FAST INFY JNJ MTB

M&T Bank

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Last up is M&T Bank (MTB), a $13 billion regional banking name that's rallied 20% alongside the rest of the financial sector in the last year. M&T is an attractive name because of how it entered the financial crisis of 2008 -- and how it exited the crisis. The firm came into 2008 with a huge retail and commercial banking business, a healthy loan book and a high level of profitability. It exited the crisis with a bigger banking business, a healthier loan book and even more profitability. By remembering that it was, in fact, a bank M&T avoided some of the riskier bets that left peers in shambles over that same period.

Even though the low-interest-rate environment that's being promulgated by the Fed is creating challenges for MTB, the bank has been making up for it by increasing volume in recent quarters, particularly in its commercial loan book. With a foothold on a lucrative (albeit competitive) market in the mid-Atlantic, the firm should be able to grow in pace with the broad economy in 2013.

In the meantime, it's paying out a 2.7% dividend yield, an impressive payout for a banking stock. While a short interest ratio of 12.7 indicates that short sellers are betting against this stock en masse, the fact that it would take almost three weeks of buying pressure for shorts to exit their bets makes for a solid short squeeze opportunity here. This bank's lack of missteps isn't a reason to bet that it's due for one and short shares -- it's a reason to be a buyer.

To see this week's short squeezes in action, check out the of Foreign Short Squeezes portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

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At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

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