Short sellers are sitting on a big bet against Petco Health and Wellness (WOOF), but the pet retailer may have handed them a problem. After years of painful restructuring, Petco delivered an earnings report that beat profitability targets and sketched out an aggressive growth plan for 2026. Petco stock is up over 40% in the past week. And with nearly 17% of the float sold short, the setup for a squeeze is becoming hard to ignore.
Here's what investors need to know.
