5 short-term stocks that could take off in June 2022

Short-term stocks are attractive because they can offer high returns in the short term. However, this strategy can also be risky as there is no guarantee that the stock will rise or not.

The short squeeze occurs when the stock price rises rapidly after a short sale and forces investors to repurchase stocks at prices higher than they originally sold them. The increase in the share price can lead to losses for those who sell their shares before the squeeze occurs.

Usually, short-term stocks aren’t something you want in your portfolio. However, due to the Reddit crowd, they are becoming an important investment tool. Therefore, you cannot keep the following five stocks in mind when building your investment portfolio.

Teleprinter Company Current price
UVF Arcimoto, Inc. $3.38
NKLA Nikola Company $5.66
UPST Upstart Holdings, Inc. $34.99
BYND Beyond Meat, Inc. $25.56
LMND Lemonade, Inc. $17.70

Arcimoto (FUV)

Source: Pavel Kapysh / Shutterstock.com

Electric vehicles have been on the rise for quite some time now. The popularity of these vehicles has grown significantly in recent years, with more and more people opting to purchase an electric vehicle.

Electric vehicles are not only a great alternative to conventional gasoline-powered cars, but also an important way to fight climate change and reduce greenhouse gas emissions. They are also less expensive than hybrid cars and can help save you money on gas costs in the long run.

Several electric vehicle companies have come to prominence for taking advantage of the Total Addressable Market (TAM). Most important, of course, is You’re here (NASDAQ:TSLA). However, other companies offer a curved way of investing in the sector.

Arcimoto (NASDAQ:UVF) is a Eugene, Oregon company that manufactures and sells two-seat, three-wheel electric vehicles called FUVs. They also have “Rapid Responder” and “Deliverator” if you need a van. InvestorPlace Market analyst Joanna Makris had a very interesting fireside chat with the company’s CEO, Mark Frohnmayer. Check it out for more information about Arcimoto.

However, although the business model is unique, commercialization will take time. Additionally, electric vehicle inventories have fallen significantly over the past six months. People are cooling off from these ventures and retreating to safer pastures. In this environment, FUV stock becomes particularly risky. Therefore, the company’s high percentage of short sales – 42% this morning – should surprise no one.

Nikola (NKLA)

The Nikola (NKLA) website homepage on a mobile phone screen.

Source: Stephanie L Sanchez / Shutterstock.com

Nikola Company (NASDAQ:NKLA) is an American company that develops high-performance commercial batteries and fuel cells. They are also developing solutions for the production of renewable energy.

Hybrid fuel cell technology is a new kind of clean energy that offers a more sustainable and cost-effective alternative to traditional fossil fuels.

Fuel cells are powered by hydrogen, which is created by combining water with electricity from renewable sources such as wind or solar power. The hydrogen then powers the engine, creating a zero-emission vehicle that emits no pollutants into the air and only water vapor from the exhaust.

The future of hybrid fuel cells lies in their ability to deliver cleaner power without compromising performance or affordability.

At the moment, the business is not profitable. The company said the net loss widened over the past quarter. That’s $79.15 million, or 37 cents per share, well above the prior year’s earnings per share of $53.43 million, or 31 cents per share. However, revenue jumped to $1.89 million from zero a year ago.

Electric vehicle stocks have been largely shunned this year, but this business appears to be suffering more than most. That’s why you’ll find this company on the short-term stock list.

Upstart Holdings (UPST)

In this photo illustration the Upstart (UPST) logo seen displayed on a smartphone screen

Source: rafapress/Shutterstock.com

Upstart Holdings, Inc. (NASDAQ:UPST) is a company that lends to individuals and businesses in the United States. They are part of a myriad of entrepreneurial fintechs that use artificial intelligence to assess the creditworthiness of borrowers.

As the academic Fadi Sakka wrote in an article for the journal Cogent Economy & Finance“the unique characteristics of AI models, together with the expansion of computing power, make new sources of information (big data) available for credit assessments”.

Investors on Reddit are largely tech-savvy people who like to invest in start-ups that have the potential to grow. Investors on Reddit also tend to be risk takers, meaning they are more likely to invest in risky stocks than traditional investors like mutual funds or pension funds.

Therefore, the UPST stock fits the profile of Reddit investors. It grows rapidly; profits and revenues increased by 154.21% and 223.62% in the last quarter. The company’s net profit margin, which is a key determinant of success, was 10.51%. It gained 27.39% over the previous year. Therefore, among short-term stocks, it is one of the best prospects.

Beyond Meat (BYND)

a package of Beyond Meat vegan sausages

Source: calimedia/Shutterstock.com

Beyond Meat, Inc. (NASDAQ:BYND) began selling its products in 2009. It is now one of the fastest growing food companies in America, with global sales topping $464.7 million last year.

Beyond Meat products are made from plants and proteins extracted from peas, soy, wheat and other grains – not animals – which means they are vegan. Most are also Kosher and Halal certified.

Despite Beyond Meat’s unique business proposition, its stock price has fallen. There are several factors to blame here aside from the general market downturn. Beyond has recently had a difficult time in terms of earnings. Sales have fallen over the past nine months due to slowing demand and pandemic-induced supply chain issues.

Therefore, it makes sense that short sellers would be interested in BYND shares.

Lemonade (LMND)

mobile phone screen showing lemonade website (LMND)

Source: Piotr Swat / Shutterstock.com

Lemonade, Inc. (NYSE:LMND) is a company that uses artificial intelligence to help customers find the right insurance. It also helps them find the right type of insurance.

Artificial intelligence tools are gradually entering the insurance sector. Indeed, they help businesses save money and provide better customer service.

Lemonade uses artificial intelligence to provide customers with more personalized insurance plans that meet their needs. Its main difference is in the way it has married big data and insurance to gather more information than ever before. The company breaks the mold in an industry dominated by companies that still use a traditional business model. The number of fields you typically see on home insurance forms is usually limited to 40, but Lemonade manages to collect 100 times more information.

The past year, however, has been full of missteps by the company. Lemonade posted a huge loss ratio in the first quarter of last year after the Texas freeze caused huge damage to its biggest market. Moreover, the investment community was not too enthusiastic about the purchase of MetroMilea San Francisco-based technology company that focuses on the automotive sector.

At the date of publication, Faizan Farooque did not hold (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and many other financial sites. Faizan has several years of experience in stock market analysis and was a former data reporter at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions about their portfolio.

Garland K. Long