Top Health Care Short-Squeeze Plays

Updated from 8:31 a.m. EDT

Many health care stocks have been pummeled during the last few months. With such deep drops in prices, short-squeeze opportunities abound.

A short squeeze takes place when a stock's short-sellers cover their positions quickly when good news boosts the price of the stock. This short-covering often drives the stock price even higher. The metric for measuring short-squeeze plays is the short ratio, which represents the number of days it would take a stock's short-sellers to cover their position based on the stock's recent average daily volume.

Stockpickr has compiled a list of health care stocks with the highest short ratios, most of which have P/E ratios of less than 26 and PEG ratios of less than 1.8. They all have market caps of more than $500 million. The portfolio includes Quest Diagnostics(DGX Quote) and Align Technology(ALGN Quote).

To read more, and for the rest of the health care short-squeeze plays, please click here.