Short Squeeze Candidate #2: Perrigo (PRGO)
PRGO stock is trading more than 50% higher for the year, which has the shorts screaming for a top. Perrigo has spent some time consolidating at the $155 level, which caused the shorts to take notice and add even more bearish bets. The 17% increase in short interest is a great indication that a short squeeze is pending, which will help PRGO stock break out of its recent consolidation.
In addition, Perrigo has some potential support building below as the 20-day moving average is sneaking up to the $155 level. The potential for support from the technicals and a break above $160 will likely be enough to get the shorts to scramble and turn into buyers to cover their positions, helping a new rally in PRGO stock.