Short interest in Europe’s consumer staples sector has doubled over the last six months, making it the most heavily shorted sector. Stocks like Campari (CPR IM), Badchem (BAD), and Nexi SpA (NEXI) face rising bearish bets, with CPR IM showing an extreme squeeze risk. The sector lags Eurostoxx, with momentum-driven shorting continuing to pressure prices

The consumer non-discretionary (staples) sector in Europe has seen its short interest double over the last six months—more than any other sector.

The sector has been underperforming the Eurostoxx index (see graph). This pattern of shorting on the way down reflects a momentum strategy.

Sub-sectors like Food, Beverage & Tobacco and Consumer Products & Services are among the worst performers.

Currently, of the stocks with the largest short positions, this sector has a disproportionate share.

CPR IM stands out with an extremely high and growing short position, as well as a squeeze score of 90. The average squeeze score is 62, and the crowded score is 57.

The stock is down nearly 50%, with 15% of analysts issuing sell recommendations.

Badchem and Nexi are at a squeeze score of 65—very close to the critical 70 level.

In the US, the sector is up, and short interest is down, but it remains a laggard compared to the index.

European consumer staples remain under pressure, with underperformance driving increased short interest. CPR IM leads with extreme short positioning and a squeeze risk nearing critical levels. As bearish momentum builds, the sector’s disproportionate share of large short positions signals continued downside risk unless fundamentals shift to support a reversal.

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