Electric vehicle maker Tesla (TSLA) has been named the best stock for investors to short right now by Wolfe Research.
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The Wall Street research firm has released its latest “Short Hits” list that names the top 16 stocks that it thinks are best-positioned for a short bet by investors. Shorts, also known as “put calls,” are essentially bets that a stock’s price will decline in the near-term.
Topping the short list currently is TSLA stock, whose share price has gained 84% over the past 12 months but whose sales and financials have deteriorated over the same time period. Short interest for Tesla’s stock currently sits at 2.3% of the company’s float, says Wolfe Research.
Other Short Candidates
Also atop Wolfe Research’s current Short Hits list is video game retailer GameStop (GME), whose short interest currently stands at 8% of its float. GME stock has doubled in the past year, outpacing TSLA stock, despite the fact that the video game company’s finances also continue to erode.
Interest in GME stock has spiked recently due to the company’s potential foray into buying Bitcoin (BTC) and other cryptocurrencies. Additional stocks on the notorious Short Hits list include U.S. Steel (X), pharmaceutical company Moderna (MRNA), Alaska Air (ALK), and online sports betting company DraftKings (DKNG).
Is TSLA Stock a Buy?
Tesla stock currently has a consensus Hold rating among 35 Wall Street analysts. That rating is based on 13 Buy, 12 Hold, and 10 Sell recommendations issued in the last three months. The average TSLA price target of $340.50 implies 4.31% downside risk from current levels.
