These stocks with upcoming earnings are short-squeeze candidates, Goldman says

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Stocks with high short interest are reaping big rewards for beating expectations for the second quarter, according to Goldman Sachs.

A solid second-quarter earnings season is spooking short-sellers and creating big rallies for some of the most doubted stocks in the market, according to Goldman Sachs. Sesha Phani of Goldman's derivatives research team said in a note to clients last week that stocks with high short interest — that is, stocks where a large portion of their shares have been sold short by hedge funds — are reaping big rewards for beating expectations for the second quarter.

mountain Plug Power has fallen sharply over the past two and a half years. Energy drink company Celsius Holdings is also on the list and reports Aug. 8. The stock has also been a big winner so far this year, rising more than 38%. Celsius has short interest of 25%, according to FactSet. Two other companies reporting on Aug. 8 are volatile bets on different parts of the financial sector. consumer lender Upstart Holdings and crypto miner Marathon Digital .

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