The healthcare sector is facing aggressive short selling, particularly targeting high-growth disruptors while avoiding major pharmaceutical companies. As of late February, short interest in volatile areas like telehealth and biotech has reached record highs. Hims & Hers Health (HIMS) leads the bearish list with a 36.90% short interest, the telehealth leader is facing intense skepticism regarding its long-term margins and the sustainability of its compounded GLP-1 offerings. At the same time, Acadia Healthcare (ACHC) is the second-most shorted stock in the sector at 35.19%. In contrast, some healthcare giants like Eli Lilly (LLY) and Johnson & Johnson (JNJ) have very low short interest at 0.71% and 0.86%, respectively. They are joined by industry leaders Bausch + Lomb Corporation (BLCO), Medline (MDLN), and Thermo Fisher Scientific (TMO), all of which maintain short interest levels well below 1%, because they are considered much safer bets during uncertain times. Healthcare stocks are outperforming the broader market so far this year. While the S&P 500 has struggled with a 0.42% decline year-to-date, the Health Care Select Sector SPDR® Fund (XLV)—which represents 12.12% of the benchmark index—has climbed 1.25%.