Take a closer look at which companies made the list

The GameStop frenzy may have quieted down, but according to Goldman Sachs, the retail trading boom could happen again soon.

Although many aspects of GameStops wild ride were unique, there are certain conditions that allowed the struggling video game retailers stock to surge 1000% in two weeks that could be easily repeated, according to Goldman: For one, retail traders have seen their cumulative fortune climb by $1 trillion since the start of the coronavirus pandemic. And the second: There are a lot of heavily shorted stocks on the market.

GAMESTOP NAYSAYERS SEE STOCK SQUEEZE WITH LOSSES OF $6B

In a note to clients, Goldman chief U.S. equity strategist David Kostin said there are still stocks with heavy bets built up against them from Wall Street investors who bet on stocks decline by selling shares they dont own.

The past 25 years have witnessed a number of sharp short squeezes in the U.S. equity market, but none as extreme as has occurred recently, Kostin wrote in the note, published on January 29. In the last three months, a basket containing the 50 Russell 3000 stocks with market caps above $1 billion and the largest short interest as a share of float has rallied by 98%.

The return on highly shorted stocks is currently the highest ever recorded, he said. Still, the rally of heavily shorted stocks has taken place against a backdrop of very low levels of aggregate short interest, he added, though noted there could still be significant losses for hedge funds.

RISING INTEREST RATES SPELL TROUBLE FOR STOCKS

In recent years elevated crowding, low turnover, and high concentration have been consistent patterns, boosting the risk that one funds unwind could snowball through the market, Kostin wrote.

These 38 stocks had the largest bets against them of any Russell 3000 stocks as of Jan. 29, according to Goldman:

  1. GameStop
  2. Ligand Pharmaceuticals Incorporated Health Care
  3. Bed Bath & Beyond
  4. National Beverage Corp.
  5. AMC Networks Inc.
  6. SunPower Corporation
  7. Macerich Company Real Estate
  8. Tanger Factory Outlet Centers
  9. Tootsie Roll Industries
  10. Accelerate Diagnostics, Inc.
  11. Academy Sports and Outdoors
  12. BigCommerce Holdings
  13. Gogo Inc. 
  14. Beyond Meat
  15. Ontrak, Inc.
  16. Clovis Oncology
  17. Esperion Therapeutics
  18. Rocket Companies
  19. Seritage Growth Properties
  20. iRobot Corporation
  21. CarParts.com
  22. Childrens Place
  23. B&G Foods
  24. Inovio Pharmaceuticals
  25. Precigen
  26. Stitch Fix
  27. Lemonade Inc. 
  28. PetMed Express
  29. Zynex
  30. Dillards
  31. Sorrento Therapeutics
  32. Workhorse Group
  33. Retractable Technologies
  34. Vaxart
  35. Vir Biotechnology
  36. Revlon
  37. Fulgent Genetics
  38. Cinemark Holdings

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