Benzinga - Investors are on the hunt for undervalued, underfollowed and emerging stocks to spot opportunities. Retail traders have countless methods at their disposal to uncover new information. For some, this may be overwhelming.
Benzinga’s Stock Whisper Index uses a combination of proprietary data and pattern recognition to showcase five stocks each week that are just under the surface and warrant attention.
The index layers editorial commentary to help make sense of why these stocks are of interest and whether they broach and area for the investor and casual reader to watch.
Here is a look at the Benzinga Stock Whisper Index for the week of Feb. 2, 2023.
Golden Sun Education (NASDAQ: GSUN): Chinese tutoring company Golden Sun was flagged by Benzinga earlier this week for climbing up the Fintel short squeeze leaderboard. Data shows 11.7% of the float short and a cost to borrow of 207.3%. The cost to borrow on shares ranks as the sixth highest at the time of writing of stocks on the leaderboard. The stock also saw strong interest using Benzinga’s proprietary data, which could suggest more people becoming familiar with the high short interest Chinese company.
Carvana Co (NYSE: CVNA): Online used car retailer Carvana has had quite the year, going from rumors of near bankruptcy to becoming a retail investor darling. The stock also ranks on the Fintel short squeeze leaderboard with 65.4% of the float short. Shares were up Wednesday, which could have been in response to the monetary policy from the Federal Reserve, with rate hikes slowing down. High inflation and interest rates have significantly impacted the used car market. While some investors are bullish on Carvana, short seller Jim Chanos remains bearish and thinks the company will go bankrupt.
Related Link: Tesla, Amazon, Meta, Carvana, Silvergate Capital: Why These 5 Stocks Are Drawing Investors Attention Wednesday
Motorsport Gaming Inc (NASDAQ: MSGM): One of the biggest movers in recent weeks was esports and video game company Motorsport Games. Shares were up over 700% in one day, with the move attributed to debt exchange and the strengthening of the company’s balance sheet. Shares fell after news of a direct offering, but remain highly volatile in the last week.
Ambev S.A ADS (NYSE: ABEV): The Brazilian brewing company could be one of the biggest surprises on the Benzinga Stock Whisper Index for the week and one that investors may want to take note of. The company counts Anheuser-Busch InBev (NYSE: BUD) as its majority owner (62%) but still trades on the open market. Ambev operates in 18 countries including Brazil, Canada, Argentina, Bolivia and Chile.
Along with selling beer in the countries, the company also has distribution deals with PepsiCo (NYSE: PEP) to sell Pepsi and Gatorade products. The company is expected to report fourth-quarter earnings later this month, which is typically the company’s highest revenue-producing quarter.
Snap Inc (NYSE: SNAP): Social media company Snap might not be whispered about in recent days after reporting quarterly earnings, but investors may want to keep the stock on their radar.
The company reported fourth-quarter results that were in line with analysts. Shares were hammered after the company withheld guidance and called out “uncertainties.” Analysts were mostly bullish on the company with headwinds in the advertising market and troubles with growth.
Rival Meta Platforms (NASDAQ: META) reported a strong fourth-quarter and saw shares surge. Meta shares are surging on Thursday and Snap shares are up as a sympathy play. The question for investors is whether Snap could also benefit in the first quarter from cost controls and user growth or if Meta is the standout in the otherwise struggling sector.
That’s it for this edition of the Benzinga Stock Whisper Index.
Click on the latest in the Benzinga Stock Whisper Index stocks to watch here:
Week of Jan. 5
Week of Jan. 12
Week of Jan. 19
Week of Jan. 26
Stay tuned for next week’s report and follow along with Benzinga Pro for all the latest headlines and top market-moving stories here.
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