Within the stock market, heavily shorted securities attract attention from diverse investor groups employing distinct strategies. Typically, short sellers—often seasoned professionals or institutional investors—identify these stocks as candidates for price weakness, betting that their valuations are overstated and anticipating declines. Conversely, some market participants, particularly retail investors, may interpret high short interest percentages as opportunities for substantial, rapid gains through a short squeeze phenomenon.
A short squeeze transpires when a stock’s price unexpectedly rises, compelling those holding short positions to purchase shares to cover losses. This covering activity drives up demand abruptly, intensifying upward price pressure and catching more short sellers off guard. Such a feedback mechanism can result in swift and substantial price escalations that surpass ordinary market fluctuations within brief periods.
To contextualize, data accurate as of January 16, 2026, from Benzinga Pro highlights the leading ten stocks exhibiting the highest levels of short interest, considering criteria such as market caps exceeding $2 billion and free floats over 5 million shares. Short interest is calculated as the percentage of publicly tradable shares currently sold short but not yet covered.
| Company Name & Ticker | Short Interest (%) |
|---|---|
| Choice Hotels International, Inc. (NYSE:CHH) | 56.33% |
| Lucid Group, Inc. (NASDAQ:LCID) | 54.45% |
| Avis Budget Group, Inc. (NASDAQ:CAR) | 52.38% |
| PureCycle Technologies, Inc. (NASDAQ:PCT) | 41.89% |
| Under Armour, Inc. (NYSE:UAA) | 41.22% |
| Revolve Group, Inc. (NYSE:RVLV) | 39.22% |
| Hims & Hers Health, Inc. (NYSE:HIMS) | 36.46% |
| ImmunityBio, Inc. (NASDAQ:IBRX) | 36.46% |
| Kohl’s Corporation (NYSE:KSS) | 36.39% |
| MARA Holdings, Inc. (NASDAQ:MARA) | 36.21% |
Stocks on this list are battlegrounds where skeptical market sentiment intersects with speculative trading behaviors. The elevated short interest percentages signal deep-seated concerns regarding these companies’ fundamentals. Still, they simultaneously set the stage for volatile market movements, particularly if positive catalysts disrupt bearish expectations.
It is essential to balance the appeal of potential quick profits from short squeezes with the inherent risks. These include significant price fluctuations and the possibility of sustaining notable losses. Timing entry and exit points in such environments presents an ongoing challenge even for experienced investors. Comprehensive due diligence remains imperative to navigate the complexities associated with heavily shorted stocks.
Currently, the ten most pronounced shorted companies exhibit a mix of sectors and operational profiles. For instance, Lucid Group, a notable player in electric vehicles, features a short interest of 54.45%, indicating substantial bearish expectations despite its industry’s growth trajectory. Similarly, Hims & Hers Health shows a 36.46% short interest, reflecting market skepticism about its health and wellness offerings.
Market participants monitor these positions closely as potential indicators of imminent price swings. Platforms providing daily leaderboards aid investors in identifying stocks gaining momentum or experiencing heightened trading interest. Such tools disclose ongoing shifts, enabling more timely assessments amid fluctuating conditions.
Ultimately, trading in heavily shorted stocks requires an appreciation of both the speculative opportunities and the underlying business risks reflected in the volatility. Investors should weigh these factors carefully against their risk tolerance and strategic objectives before engaging in such markets.