Chegg Stock Named a Top 2020 Pick at Needham

Needham just added Chegg to its conviction list for 2020

Online learning platform Chegg Inc (NYSE:CHGG) is up today after Needham called the stock one of its top picks for 2020, and adding the equity to its conviction list. Now, the security is eyeing a five-day win streak -- its longest in over a month. At last check, the shares of CHGG are up 1.1% to trade at $38.81.

In recent months CHGG has been pushing higher, thanks in part to a post-earnings pop back in early November. This helped push the security back toward its $40 region, where it quickly lost steam later in the month. The 120-day moving average quickly caught the shares, however, sparking its recent win streak. For the year, the stock has added over 35%.

Analysts have taken notice, with 10 of the 12 in coverage calling the security a "buy" or better. Plus, the consensus 12-month target price of $43.79 represents a level untouched by the equity since mid-August.

While short interest has begun to inch lower -- down 4.4% in the last two reporting periods -- the 19.25 million shares sold short represent a solid 17.5% of Chegg's available float. Plus, it would take 12 days to cover all these bearish bets, which could propel the stock higher, should these pessimistic positions continue to unwind.