Top Service Sector Short-Squeeze Plays

Updated from 6:30 a.m. EST

A couple of weeks ago, the drop in the stock market was blamed on the weakness in the services sector. This could create an opportunity for investors looking for short-squeeze plays.

A short squeeze takes place when those selling a stock short scramble to cover their bearish positions on any rise in the stock. This short-covering drives the price of the shares up even more sharply.

Short-squeeze potential is measured by the short-squeeze ratio, which is the number of days it would take for short-sellers to cover their positions. Stockpickr has combed through the publicly traded companies in the services sector and compiled a list of 10 potential short-squeeze plays.

Clear Channel Outdoor Holdings(CCO Quote) has one of the highest short ratios of the service sector group: 44. This outdoor advertising company was recently upgraded by Bear Stearns from peer perform to outperform. Its earnings release is scheduled for Feb. 14. The stock has a price-to-earnings (P/E) ratio of 41 and a P/E-to-growth (PEG) ratio of 2. ...