Top Health Care Short-Squeeze Plays

These heavily shorted health care stocks have the potential to surge higher on any positive catalyst.
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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) - Get Report

and

Align Technology

(ALGN) - Get Report

.

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

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