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3 best-selling stocks to buy that hit rock bottom


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  • The pain of these best-selling stocks is turning them into actionable buys.
  • Assets received (UPST): This is a post-benefit baby opportunity with the bathwater.
  • You’re here (TSLA): Stocks have over $20 billion in bearish short interest at risk.
  • Chewy, Inc. (CHWY). This pet supplies company has a strong position in the industry and a lifetime bottom to support stocks.

Source: Borka Kiss / Shutterstock.com

Bulls are pressing into Friday’s session, with stock prices surging due to extremely oversold conditions. And while one day doesn’t necessarily make a trend, buying into a more meaningful low looks attractive for some of the market’s best-selling stocks.

Prices have skyrocketed everywhere this year. From apples at the grocer to gas at the pump or those shoes on Zapposit has been a costly environment for consumers and businesses due to inflation and supply chain issues related to Covid-19 and Russia.

But for riskier assets, it’s a whole different story. In these long-running most hated companies with high short-term interest, bears have especially felt at home in 2022.

Today though, let’s take a look at three of the market’s best-selling stocks to buy. Their shares reveal price charts ready for investors to take advantage on the upside.

UPST Assets received $38.13
TSLA You’re here $769.59
CHWY Chewy, Inc. $27.97

Top shorted stock to buy: Upstart Holdings (UPST)

Source: Charts from TradingView

Assets received (NASDAQ:UPST) is the first of our shortest stocks to buy. UPST stock has fallen out of favor on Wall Street, save for the attention of its bearish 30% sell interest. This trend has been costly for bullish investors to ignore.

This week, the cloud-based artificial intelligence (AI) lending referral company saw its shares more than halve in value despite posting its seventh consecutive profitable quarter and fourth consecutive quarterly report with triple-digit year-over-year revenue growth.

Behind buyer’s remorse, Upstart guided full-year revenue down 11% to double-digit sales growth.

Management also offered a bearish-sounding token dialogue in a viciously intolerant market looking for a reason to sell. And the combination resulted in the bears dominating the day and analysts cutting price targets, preparing to look even dumber.

With shares up 93.50% this week from October’s all-time high and creating a lifetime double bottom with high volume and an island reversal pattern, this shortest stock offers an attractive spot. to buy long-term growth at a steep discount.

Tesla (TSLA)

Source: Charts from TradingView

You’re here (NASDAQ:TSLA) is the next of our shortest stocks to buy.

The world’s largest electric vehicle maker is not a name to bet heavily on percentage terms. But its nearly 3% short position is the largest in the market in dollar terms by a wide margin, with more than $20 billion in bets wagered against TSLA shares.

Now, unless we enter a global recession so severe that it takes transport back to the Stone Age, it’s time to put the brakes on bear control.

Technically, Tesla is setting up a lower, double-bottom variation on the weekly timeframe. The bottom of the bullish pattern follows a failed cut base and a bear market cycle about 48% deep.

So far, the TSLA Weekly Hammer Candlestick and Stochastics have not confirmed a low pattern. But it should happen next week. If these conditions are met, a bullish out-of-the-money summer-dated buy spread is a way to generate faster profits while controlling risk.

Chewy, Inc. (CHWY)

Source: Charts from TradingView

Chewy, Inc. (NYSE:CHWY) is the last of our most shorted stocks. The popular online retailer of pet supplies has long been a trending name with bears, and shorts now make up about 28% of CHWY’s stock float.

Some of those bets against Chewy have largely profited as the shares are down 81% at this month’s low from last February’s high of $120. But today, CHWY’s niche-shaped price action is set for a new bullish cycle.

Technically, as the monthly chart reveals, stocks are currently forming an oversold doji candlestick challenging its all-time lows. The chart action has the characteristics of a lifetime double bottom in the making.

Coupled with Chewy’s dominant position in a growing pet care market, a very modest large-cap valuation of just $12 billion, a puny price multiple of just 1.22 times sales, and business at positive cash flow, things look interesting.

And ultimately, in the long run, this bodes incredibly well for the chances of this shortest stock to learn a new bullish tip.

As of the date of publication, Chris Tyler had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

The post Top 3 Selling Stocks To Buy That Hit The Bottom appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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