Core Viewpoint - Brinker International Inc (NYSE:EAT) is experiencing a breakout above the $165-$168 range, indicating a strong buying opportunity as it approaches its all-time high of $192.22 from February 4 [1] Group 1: Stock Performance - The stock has shown a significant year-to-date gain of 31.4% and a remarkable 148.9% increase over the last 12 months, suggesting strong performance [3] - The equity is bouncing sharply off its 10-month moving average, indicating potential upward momentum [2] Group 2: Market Sentiment - Analysts are generally bearish on EAT, with 14 out of 18 firms rating it as "hold" or worse, suggesting potential for upgrades [3] - There is a high level of put open interest at the 170-strike, with a Schaeffer's put/call open interest ratio (SOIR) of 2.40, ranking in the 98th percentile of annual readings, indicating prevailing pessimism that could reverse [2] Group 3: Short Selling and Options - Brinker International stock is positioned for a potential short squeeze, with 11.9% of its available float sold short, many of which are currently underwater [3] - The recommended call option has a leverage ratio of 7.4, which could double with a 14.4% gain in the underlying security [3]

Core Viewpoint - The article discusses two heavily shorted stocks, Wolfspeed and Kohl's, highlighting the intense pessimism surrounding their financial health and the potential for short squeezes if either company shows signs of recovery [1][2]. Group 1: Wolfspeed - Wolfspeed is a chip company with over 45% of its floated shares sold short, marking the highest level in its history as of May 15 [2][3]. - The company is reportedly preparing to file for bankruptcy and has rejected proposals from creditors to restructure its $6.5 billion in debt, leading to a 59% drop in its stock price on May 21 [3][4]. - The company's future hinges on receiving $750 million in CHIPS Act funding, which is currently uncertain due to potential changes under the Trump administration [4][5]. - Analysts believe Wolfspeed could still receive tax credits despite the uncertainty around the CHIPS Act, and the company plans to apply for $600 million in tax credit refunds after June 30 [7]. - The high short interest makes Wolfspeed a candidate for a short squeeze, but analysts have suspended coverage due to the likelihood of financial restructuring [8]. Group 2: Kohl's - Kohl's has a short interest of just under 54% of its floated shares as of May 15, the highest level ever, reflecting concerns over its financial performance [9][10]. - The company has not posted positive year-over-year sales growth since Q4 2021, and its recent CEO was ousted due to misconduct, indicating significant internal issues [11]. - Despite the challenges, some analysts have raised their price targets for Kohl's, with Baird and Telsey Advisory Group setting targets of $9, suggesting a potential 10% increase from recent prices [12]. - However, bearish analysts at Barclays and Goldman Sachs have set lower price targets, indicating a divided outlook on the stock's future [13].

Core Insights - Lululemon Athletica Inc's stock is currently trading at $319.20, buoyed by a price-target increase from TD Cowen to $373 from $370, despite global trade tensions [1] - The company is set to report its first-quarter results on June 5, with shares testing their 320-day moving average [1] - Lululemon is recognized as one of the best S&P 500 stocks to own this month, with an average monthly increase of 9.4% and an 80% higher month-end performance over the past decade [3] Stock Performance - A potential move from the current price could see shares approaching $350, which would be the highest trading level since March and extend a 23% lead over the past nine months [4] - Currently, 14 out of 31 firms covering Lululemon rate it as a "hold" or worse, indicating room for upward momentum [4] Short Interest and Market Sentiment - There is potential for a short squeeze, as short interest has decreased by 8% in the last two reporting periods, but 5.94 million shares sold short still represent 5.4% of the stock's available float [5] - Historically, Lululemon has shown a positive trend in post-earnings reactions, with six of the last eight sessions closing higher, including a notable 16% gain in December [6] - The options market is currently pricing in a larger expected move of 13.8% for trading following the earnings report [6]

Core Viewpoint - Foot Locker Inc is set to announce its quarterly results on May 29, following a recent acquisition by Dick's Sporting Goods for $2.4 billion, with the stock currently consolidating around $24 and showing a year-to-date increase of 10.2% [1] Group 1: Earnings and Stock Performance - The stock has a history of significant post-earnings movements, averaging a next-day swing of 17.5% over the past two years, while current options are pricing in a much smaller expected move of 2.4% [3] - A potential short squeeze could occur if earnings results are positive, as short interest accounts for 16.1% of the stock's available float, equating to over three days' worth of buying power [3] Group 2: Volatility and Options Trading - Investors may consider options as a strategy to manage earnings volatility, as Foot Locker's Schaeffer's Volatility Index (SVI) is at 23%, which is in the low 10th percentile of its annual range, indicating low volatility expectations from options traders [4]

Core Viewpoint - The article discusses three tech companies, SoundHound AI, Serve Robotics, and Plug Power, which have the potential to experience significant stock price increases, particularly due to their heavily shorted status and growth prospects [1][5]. SoundHound AI - SoundHound AI specializes in AI-powered audio and speech recognition tools, with its app capable of identifying songs from short audio clips [7]. - The stock has declined over 50% since its all-time high in December, with 31% of its float shorted as of April 30 [8]. - Despite being unprofitable and trading at 28 times this year's sales, analysts project a 54% compound annual revenue growth over the next two years due to increased adoption of AI-powered chatbots [9][10]. Serve Robotics - Serve Robotics, founded in 2017, develops autonomous delivery robots and aims to deploy 2,000 robots for Uber Eats by the end of the year [11][12]. - The company’s revenue is expected to grow from $1.8 million in 2024 to $91.7 million in 2027, with a current market cap of $600 million [13]. - The stock has dropped about 60% from its all-time high, and 17% of its float was shorted as of April 30, indicating potential for future growth [13]. Plug Power - Plug Power focuses on hydrogen fuel cell technologies and has deployed over 70,000 fuel cell systems globally, with major clients including Amazon and Walmart [14]. - The stock has seen a 95% decline over the past three years, with 25% of its float shorted as of April 30, reflecting bearish sentiment due to weak market demand for hydrogen projects [15]. - Analysts expect a 29% compound annual revenue growth from 2024 to 2027, driven by market stabilization and a $1.66 billion loan guarantee from the U.S. Department of Energy [16].

Core Viewpoint - Advanced Micro Devices (AMD) has experienced a significant stock rally, with shares rising 15.82% to $118.03, driven by positive developments in the semiconductor industry and a new $6 billion share buyback plan [1][6]. Group 1: Stock Performance - AMD stock emerged from a period of stagnation in mid-April, showing a strong upward trend in the last five trading days [1]. - The short volume ratio for AMD reached a two-week high of 55.17 on May 13, indicating increased bearish sentiment, although this may lead to a short squeeze as the stock continues to rise [3][4]. Group 2: Share Buyback Announcement - On May 14, AMD's board announced a $6 billion share buyback plan, bringing the total for 2025 to approximately $10 billion, reflecting confidence in the company's strategic direction and growth prospects [6]. - The announcement of the buyback is expected to positively impact investor sentiment, as it reduces outstanding shares and increases the value of each remaining share [7]. Group 3: Earnings and Economic Context - AMD's recent earnings report showed strong growth, beating both earnings-per-share (EPS) and revenue forecasts, contributing to the positive momentum in its stock price [8]. - The stock rally is also supported by a truce in the U.S.-China trade war, which is particularly beneficial for semiconductor companies affected by export restrictions on AI microchips [9].

Core Insights - Under Armour Inc (NYSE:UAA) shares increased by 0.8% to $6.26 following a fiscal fourth-quarter report that showed a narrower-than-expected loss and revenue that exceeded estimates, indicating successful turnaround efforts by the company despite challenging macroeconomic conditions [1] Group 1: Stock Performance - UAA is currently facing its 80-day moving average and is down 24.5% year-to-date for 2025, although shares have risen nearly 10% in May, surpassing the $6 mark [2] - The options market is experiencing high activity, with total options volume at three times the average daily pace, indicating strong investor interest [3] Group 2: Options Activity - The most popular options are the May 6 put and call, reflecting bullish sentiment among traders [3] - Short interest has decreased by 6.3% in the latest reporting period, but 32.80 million shares sold short still represent 17.4% of UAA's total float, suggesting a potential for a short squeeze [3]

Group 1 - CAVA Group Inc has been referred to as the 'next Chipotle,' experiencing significant growth since its trading debut in June 2023, although the stock is down 13% in 2025 [1] - The stock has shown varied post-earnings movements, averaging a 6.2% change after the last eight earnings reports, with a notable 14.6% swing anticipated for the upcoming report [2] - CAVA shares have been trading within a tight range, having tested its 320-day moving average multiple times since early March, following a peak of $172.42 on November 13 [3] Group 2 - There is potential for a short squeeze, as short interest has decreased by 10% in the last two reporting periods, yet 9.3% of the stock's float remains sold short [5] - The stock has outperformed options traders' volatility expectations over the past year, indicated by a Schaeffer's Volatility Scorecard (SVS) rating of 84 out of 100, suggesting a favorable environment for options trading [5]

Group 1 - Hims & Hers Health Inc. reported strong first-quarter earnings, leading to a bullish market reaction despite expectations of a downturn from short sellers [1][2] - The company's stock has surged 100% in the past month and over 100% year-to-date, defying bearish predictions [2] - Short interest remains high at approximately 33% of the float, indicating significant borrowing activity and potential for a short squeeze [2][3] Group 2 - Hims & Hers stock is currently trading at $51.12, well above its moving averages, indicating a strong bullish trend [3] - The earnings report did not hinder the stock's upward momentum, suggesting that short sellers may be facing increasing pressure [3][4] - The company is expanding its offerings beyond weight-loss medications, potentially positioning itself for further growth [4]

Core Viewpoint - Hims & Hers Health Inc. is positioned as a potential disruptor in the healthcare sector, combining traditional medicine with telehealth innovations, leading to significant user growth and financial performance [2][4][10]. Company Performance - The company reported active users reaching 2.4 million, reflecting a net growth rate of 38% over the past year [5]. - Hims & Hers achieved a net revenue growth of 111% year-over-year, totaling $586 million [6]. - The gross profit margin stands at an attractive 73%, allowing for substantial capital retention from sales [7]. - Free cash flow reached a record $50.1 million, nearly five times the previous year's $11.9 million [8]. - The return on invested capital (ROIC) is reported at 24.6%, indicating strong potential for long-term value compounding [9]. Market Dynamics - The company secured a collaboration deal with Novo Nordisk, enhancing its revenue streams and industry recognition [10]. - Institutional investors contributed $739 million in capital over the past quarter, with an additional $86 million in the current quarter, signaling strong market confidence [11]. - Approximately 33.3% of Hims & Hers shares are held in short positions, creating potential for a "short squeeze" if the stock rallies [12]. - Analysts may adjust their valuations and ratings in response to the company's growth, potentially leading to upward pressure on the stock price [13].