Avoid or short Tesla, First Solar and other stocks, according to Wolfe Research

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Investment Strategy News

Stock Markets,Tesla Inc,First Solar Inc

These companies could find themselves at the mercy of short sellers.

Wolfe Research has a list of stocks that are big targets for short sellers — and it includes some of the market's most well-known names. The firm compiled a basket of stocks that appear most frequently on 16 different screens for short-sale candidates. Short sales involve borrowing shares of a target stock, selling them on the open market and counting on the price to fall when it comes time to repay, pocketing the difference.

mountain Tesla, year to date First Solar also made the Wolfe list of possible short targets, with appearances on five screens, up from three screens the month before. Unlike Tesla, the solar stock has soared more than 60% this year. But after that big run-up, the average analyst surveyed by LSEG forecasts First Solar shares will fall more than 6% over the next year. at the same time as the typical analyst carries a buy rating.

 

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