Wells Fargo says a market ‘short squeeze’ is coming. Here are the stocks to target for a trade
CNBC••entertainment
Key Points:
- Wells Fargo anticipates equities will rise, particularly lagging stocks with significant short interest, driven by increased spending from tax refunds, faster earnings growth in underperforming sectors, and additional liquidity from the Federal Reserve.
- The bank identified a basket of heavily-shorted and underperforming stocks in the Russell 3000 index poised for a rebound, including Herc Holdings, which is down 15% over the past year but recently upgraded to overweight by KeyBanc Capital Markets with a 27% upside potential.
- Herc Holdings’ recovery is supported by overcoming initial integration challenges from its acquisition of H & E Equipment Services and completing IT systems integration to improve efficiencies.
- Wells Fargo also highlighted biotech company Vera Therapeutics, which has gained
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