As weeks of relentless selling finally begin to appear in the market, we have been looking for stocks that may be overdue for a short-term pop. Traders typically find stocks that may be “oversold” by comparing their current price to the average price over the past 200 days. Using this metric, CNBC PRO selected the hottest names in the S&P 500, then added a few other criteria to find possible pop candidates for a trade. In addition to being heavily oversold, the stocks in our research also have high short interest relative to their available-for-trading stocks. If hedge funds have large bets against stocks, those stocks could be ripe for a short squeeze if stocks rise and the funds are forced to buy back the stocks to cut their losses. We also looked for stocks where Wall Street analysts believe there is significant upside potential based on the potential return to their consensus price target. Here are the stocks that floated across our screen: Source: FactSet Admittedly, this list doesn’t necessarily show good long-term buys. If the market resumes its slide, these stocks could be hit hard again. This is simply an exercise in finding possible short-term pop candidates by screening them as traders typically do. The list is filled with broken travel and leisure names that have been hit this year by a confluence of concerns, including a possible recession, rising fuel costs and war in Ukraine. These stocks include Caesars, Carnival and Norwegian Cruise Line. Retail-related stocks are also well represented on the list, with the sector taking big hits this month after warnings from Walmart and Target about rising costs and bloated inventory hitting margins. Our list included Best Buy, Bath & Body Works and Under Armor among those names. With one trading day remaining this week, the Dow Jones Industrial Average is poised to break an 8-week losing streak. After briefly falling into a bear market a week ago, the S&P 500 has rebounded 4% this week. However, the S&P 500 is still 15% off the all-time high it hit in early January.
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