Core Insights - There is a rising interest in high short-interest stocks ahead of Q1 2026, with many stocks having robust outlooks but being heavily shorted, leading to depressed prices and potential for rebounds [1][2] Group 1: Stock Analysis - JPMorgan Chase will begin peak fiscal 2025 Q4 reporting on January 13, 2026, indicating limited time for positioning ahead of the season [2] - Hims & Hers Health has faced pressure due to GLP market shifts but is expected to see growth slow to the high-20% range in fiscal Q4, with a 30% short interest suggesting a potential squeeze [3][4] - Applied Digital's short-covering rally is likely underway, with AI capacity sold out and demand increasing, affirming robust forecasts and a 50% revenue outlook increase upon completing its second campus [7] Group 2: Market Trends - Many quality stocks with strong outlooks have been heavily shorted in the latter half of 2025, setting them up for rebounds in 2026, driven by AI demand for infrastructure and services [5] - Analysts are raising price targets and issuing upgrades, indicating a potential 15% rebound at consensus, which could push the market above critical moving averages [4]
5 High Short-Interest Stocks to Buy Before Q1 2026