Most retailer stocks have short interest above their five-year averages – Citi

Eleven out of 15 retailers (NYSEARCA:XRT), (RTH) across Citi Research’s coverage have short interest that is above their five-year average.

The five-year average for retailer stocks is 1.1x, and Advance Auto Parts (AAP) stands out with short interest 2.7x its historical averages.

Valvoline (VVV), Petco Health and Wellness (WOOF), O’Reilly Automotive (ORLY), and Best Buy (BBY) all have short interest in the range of 1.5–2.0x historical averages.

The bottom five stocks have less short interest than the historical average. Those are Chewy (CHWY), RH (RH), Boot Barn Holdings (BOOT), Lowe’s (LOW), and Williams-Sonoma (WSM).

In addition, compared to last May, the short interest is now lower vs. history for Boot Barn (BOOT) and higher vs. history for Soho House & Co. (SHCO), Williams-Sonoma (WSM), and The Home Depot (HD).

Here is the current short interest as a multiple of five-year average:

• Advance Auto Parts (AAP) – 2.8x
• Valvoline (VVV) – 2.0x
• Petco (WOOF) – 1.7x
• O’Reilly (ORLY) – 1.5x
• Best Buy (BBY) – 1.5x
• Tractor Supply (TSCO) – 1.3x
• Floor & Décor (FND) – 1.3x
• AutoZone (AZO) – 1.3x
• Soho House (SHCO) – 1.1x
• The Home Depot (HD) – 1.1x
• Williams-Sonoma (WSM) – 1.0x
• Lowe’s (LOW) – 0.8x
• Boot Barn (BOOT) – 0.8x
• RH (RH) – 0.7x
• Chewy (CHWY) – 0.5x

Lastly, hardlines retail sits on average at 8.7% short interest as a percentage of the float, which is slightly below what was in May.

Petco (WOOF) was the highest on the list again in October, and Boot Barn (BOOT) moved down slightly to seventh place.

The bottom five have not changed in order since May, with The Home Depot (HD) still the lowest percentage of the float.