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TheStreet Open House

5 Short-Squeeze Stocks Ready to Pop

Stocks in this article: CPBGMCRCRMDISCAWM

Campbell Soup

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Don't let Campbell Soup's ( CPB) household name fool you -- investors absolutely hate this stock. That hasn't exactly worked out so well in 2013: Year-to-date, shares of CPB have rallied more than 37%.

That means that short sellers have been getting shellacked all year even if Campbell's short interest still stands at more than 13 this summer. That glut of beaten-down short sellers makes CPB a stellar short squeeze candidate right now.

>>5 Stocks Setting Up to Break Out

Soup isn't Campbell's only business. The firm may be the largest soup maker the world, but it also owns food brands such as Pace, Swanson and Pepperidge Farm. The firm just announced a big move in selling its European soups, sauces and simple meals to private equity firm CVC Partners -- the deal should free up significant cash for CPB to return to shareholders without touching the U.S. segment that makes up more than 70% of sales.

While Campbell's 2013 rally has reduced its dividend yield right now, the firm's current 2.42% yield still qualifies as "high" in this extremely low interest rate environment. With earnings slated at the end of the month and the pricing details of the European deal with CVC yet to be announced, there's a lot of headline risk in being short Campbell right now. Watch out for a squeeze.

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