JPMorgan Chase (NYSE: JPM) will kick off peak fiscal 2025 Q4 reporting on Jan. 13, 2026, which means there is not much time left to position for the season. The takeaway in early December is that many stocks, stocks with robust outlooks, have been heavily shorted, their prices are depressed, and they are set up for robust rebounds next year.
Now is the time to start getting some exposure. This article examines five of the highest short-interest stocks on Wall Street, their earnings outlooks, and what might drive a short squeeze in their stock prices.
Hims & Hers Health Could Double in Price
Hims & Hers Health (NYSE: HIMS) stock came under pressure in early 2025 for good reason. The shifting GLP market and issues with its services were cause for concern. However, the story in late 2025 is that the impact of its GLP-1 issues was fleeting, and efforts to expand services and market penetration are gaining traction. The outlook for fiscal Q4 (FQ4) is for growth to slow into the high-20% range, but the bar is low, and outperformance is likely. With short interest at 30%, a squeeze is very possible.
Additionally, the company is in talks with Novo Nordisk (NYSE: NVO) regarding the sale of the GLP inhibitor Wegovy, and a share buyback authorization has been recently approved. The company plans to buy back $250 million, about 3% of its market cap, affirming its financial health and management's confidence in growth forecasts.
Meanwhile, analysts are lifting price targets and issuing upgrades in early December, pointing to a 15% rebound at the consensus. Good news could easily send this market to a consensus, putting it above critical moving averages and on track to reclaim the highs set earlier this year.
Applied Digital: Outperforms, Capacity Is Sold Out
Applied Digital's (NASDAQ: APLD) short-covering rally has likely already begun. The latest results, from it and GPU-maker NVIDIA (NASDAQ: NVDA), reveal that AI capacity is sold out and demand continues to grow. The net result is that the APLD’s robust forecasts are affirmed, and the longer-term outlook is improving. It may take time, but APLD is on track to complete its second campus and then move on to a third, increasing its revenue outlook by 50% when it does.
Short interest in APLD was over 30% in late November and likely to have fallen since. The stock price is moving up in early December, buoyed by its outlook and analyst sentiment trends.
The analysts' trends reveal 13 with coverage, the rating is pegged at Moderate Buy, and the price targets are rapidly increasing. The consensus lags the market but is up approximately 150% in the last year, with the high end of the range pointing to a 30% upside and a fresh all-time high.
SoundHound: 30% Short Interest and Inflection Point Ahead
SoundHound (NASDAQ: SOUN) also carries a 30% short interest as of late November. The concern is that hype inflated the action, but the deal trends belie the fears.
The company is expanding its voice-activated AI services into new verticals and deepening its penetration among clients, and it has significant momentum in prior quarters.
Looking ahead to 2026, the company is approaching an inflection point at which it will reach profitability. The FQ4 release is an opportunity for management to shed light on the outlook, and it is likely to be in shades the market likes.
The consensus is for revenue growth to slow but remain at a hyper pace of nearly 60%.
Super Micro Computer: Market Waiting for the Proof
Super Micro Computer (NASDAQ: SMCI) has been plagued by many issues, including a recent weak report, that have left its market in a wait-and-see posture unmatched by any other stock.
SMCI reported fiscal year 2026 Q1 earnings on Nov. 4. The guidance for FQ2 is strong, roughly 2,500 basis points better than expected, and should have already triggered short-covering.
The likely outcome is that AI and GPU demand will be reflected in its server business and guidance, coming in well above the consensus figures, providing the much-needed catalysts. Until then, analysts' sentiment is firming around the consensus estimate, which forecasts a 35% stock price upside.
MP Materials' Market Follow-Through Is Coming
MP Materials' (NYSE: MP) early-2025 stock price surge was a signal that the stock is heading higher over the long term. The question now is when the market follows through on the signal, and it is likely to be in early 2026.
The company not only has the support of the U.S. government, but it is already producing revenue and profits, unlike the majority of the rare-earth plays, which spiked in tandem with MP’s stock price.
Short interest in this name isn’t as high as some of the others, but it is still sufficiently high to assist in a rapid stock price increase when the catalysts arrive. Analysts' coverage aligns with an outlook for a rapid rebound, including a significant increase in coverage, a Moderate Buy rating, and a forecast for a 30% upside.
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The article "5 High Short-Interest Stocks to Buy Before Q1 2026" first appeared on MarketBeat.
