Investors looking for value should review the companies on the S&P 500 (SPY) that have the highest short float. Hedge funds are betting against firms on a bearish view that they have further to fall.
As of April 1, the short interest as a percentage of float on Paramount Global (PARA) was 13.9%. Even as the media firm shops for a buyer, bears are not backing down. Potential acquisition rumors are not helping PARA stock break out of a slump.
Short interest in retailer Etsy (ETSY) is unusual. Etsy sells unique goods that appeal to consumers. Chances are high that the stock will sink below $60, due to valuation.
Used automotive retailer CarMax (KMX) has a short interest of 12.1%. Bears continue to bet that the KMX rally from the $60 low will not hold.
In the cruise ship sector, both Carnival (CCL) and Norwegian Cruise Line (NCLH) attract bears. Traveling volumes may weaken after the “revenge travel” phase ends. Prices for cruises are rising, which may dent demand.
In the retail sector, bears are betting against Best Buy (BBY), Ralph Lauren (RL), and V.F. Corp (VFC). After PVH (PHV) issued weak guidance, expect consumers to continue cutting back on spending. Inflation hurt their disposable income, forcing them to stop buying things they do not need.
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