Jabran Kundi
3 min read
In This Article:
We recently published a list of 20 Underperforming Stocks Targeted By Short Sellers. In this article, we are going to take a look at where Monro, Inc. (NASDAQ:MNRO) stands against other underperforming stocks targeted by short sellers.
Short interest refers to the percentage of publicly available shares that have been sold short. It is an indicator used by many investors to determine how strong a company’s bear thesis may be. Due to the nature of short selling, the short interest has become a popular indicator among investors.
The reason it is given so much weightage is that people betting against a stock have usually done solid research and are confident of a company’s downfall. They take unlimited risk, so when big investors or the smart money shorts a stock, people take notice. They try to unearth the red flags that may have prompted the high short interest.
We decided to dig deeper and try to find out where smart money sees trouble ahead. To come up with our list of 20 underperforming stocks targeted by short sellers, we looked at the worst-performing stocks of the last six months and then ranked them by the short interest.
A car in a service bay being inspected by a technician for a routine maintenance service.
Short interest: 16.24%
6 months’ performance: -47.88%
Monro, Inc. (NASDAQ:MNRO) operates automotive repair and retail tire stores in the U.S. The company provides automotive undercar repair services, replacement tires and tire-related services, and routine maintenance services. It offers its services to light trucks, vans, and passenger cars.
Monro, Inc. (NASDAQ:MNRO) missed its most recent quarterly revenue estimates with a revenue decline of 3.74% YoY. Comparable sales also went down by 0.8%. However, an improvement of 500bps was seen as compared to the previous quarter. Driven by higher material costs and promotional expenses, the operating and gross margins also decreased. Overall, the quarter did not end well for the company.
Macroeconomic challenges and proposed tariffs on vehicle imports continue to subdue the stock’s performance. Tariff complications will potentially lead to a rise in prices for vehicles and parts, affecting their sales and revenue.
Overall, MNRO ranks 11th on our list of underperforming stocks targeted by short sellers. While we acknowledge the potential of MNRO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than MNRO but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
