Best Stocks To Short Today Amid Concerns Over Higher Unemployment

This morning there were some mixed markets, with the Nasdaq well in the green, while the Dow and S&P 500 were flat on the day. Fed minutes yesterday raised concerns about the depth of the economic reality we are facing, right before getting worse-than-expected jobless claims this morning, once again breaking the 1 million mark coming in at 1.106 million for the week, versus expectations of 923,000. The jump comes amid deadlock in Washington over a coronavirus stimulus bill. Eyes are also looking at U.S.-China tensions, as China’s commerce ministry announced that Washington and Beijing will be back to the negotiating table in the coming days – given the amount of tension lately, there is plenty to worry about already. If you’re looking for places to hedge your portfolio or want some stocks to short, our deep learning algorithms paired with Artificial Intelligence (“AI”) technology have you covered with the Top Shorts today.

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Expedia Group Inc (EXPE)

First on the Top Shorts list today is Expedia Group Inc with AI-based factor scores of B in Technical, F in Growth, F in Momentum Volatility, and F in Quality Value. It has not been a pretty year for tourism, really hurting the stock price which is down 20.99% for the year already. The company is the world’s largest online travel agency by bookings, offering services for lodging (70% of total 2019 sales), air tickets (7%), rental cars, cruises, in-destination, and other (14%), and advertising revenue (9%). As for the financials, Revenue was $12067.0M in the last fiscal year, which compares to $10060.0M three years ago. Operating Income was $961.0M in the last fiscal year versus $626.0M three years ago. EPS was $3.77 in the last fiscal year, better than the $2.42 three years ago. ROE was 10.19% in the last year, compared to 6.28% three years ago. Forward 12M Revenue is expected to grow by 15.39% if things go well, but this estimation comes with many caveats.

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MORE FROM FORBESExpedia Group (EXPE)

Ii-Vi Inc (IIVI)

Next on the Top Short list is a repeat company in Ii-Vi Inc. The company manufactures engineered materials, optoelectronic components and products used in industrial, optical communications, military, semiconductor, consumer, and life science applications. The firm operates in three segments: laser solutions, photonics, and performance products. Our deep learning algorithms have assigned factor scores of D in Technical, D in Growth, D in Momentum Volatility, and D in Quality Value to the stock that is up 23.7% for the year, setting up an excellent entry point for short sellers. Revenue was $2380.07M in the last fiscal year versus $1158.79M three years ago. Operating Income was $199.38M in the last fiscal year, which compares to $140.46M three years ago. EPS was $(0.79) in the last fiscal year, compared to $1.35 three years ago. ROE was (4.18%) in the last year, much worse than the 9.14% three years ago. The stock is trading with a forward 12M P/E of 16.78.

MORE FROM FORBESII-VI (IIVI)

JetBlue Airways Corp (JBLU)

Another pandemic losing company on the Top Short list today is JetBlue Airways Corp JBLU with AI-based factor scores of D in Technical, F in Growth, D in Momentum Volatility, and F in Quality Value. The stock is down 41.87% for the year already, but our systems think the next leg is likely lower. The company is a low-cost airline that offers high-quality service, including assigned seating and in-flight entertainment. It carries over millions of customers with an average of more than 1,000 daily flights and served approximately 99 destinations in the United States, the Caribbean, and Latin America. The financials are going to be drastically changing, but revenue was $8094.0M in the last fiscal year, which compares to $7012.0M three years ago. Operating Income was $814.0M in the last fiscal year versus $973.0M three years ago. EPS was $1.91 in the last fiscal year, much lower than the $3.45 three years ago. ROE was 12.0% in the last year, compared to 26.07% three years ago. Forward 12M Revenue is expected to grow by 33.55%, but with covid still lacking a cure, this may change drastically.

MORE FROM FORBESJetBlue Airways (JBLU)

Kar Auction Services Inc (KAR)

Next on the Top short list is Kar Auction Services Inc with our deep learning algorithms assigning factor scores of C in Technical, D in Growth, D in Momentum Volatility, and D in Quality Value. The stock is down 20.32% for the year already, and likely to head lower according to our AI technology. The company offers a total package for wholesale-used car transactions, from salvage and used-car auctions to a broad range of financial and logistical support. The services comprise financing, repossessions, repairs, transportation, warranty, and inventory services. Revenue grew by 8.88% over the last three fiscal years to $2781.9M in the last fiscal, which compares to $2238.8M three years ago. Operating Income was $314.1M in the last fiscal year compared to $326.5M three years ago. EPS was $1.42 in the last fiscal year, versus $2.62 three years ago. ROE was 5.93% in the last year, much lower than the 12.07% three years ago. Forward 12M Revenue is expected to grow by 11.21% and the stock is trading with a forward 12M P/E of 15.43.

MORE FROM FORBESKAR Auction Services (KAR)

Nike Inc (NKE)

Our final Top Short today is an unexpected one, with Nike Inc NKE making the list today. The company is the largest athletic footwear and apparel brand in the world. It designs, develops, and markets athletic apparel, footwear, equipment, and accessories in six major categories: running, basketball, soccer, training, sportswear, and Jordan. Footwear generates about two thirds of its sales, and it has run some major social justice campaigns in recent years. Our AI systems have identified factor scores of D in Technical, D in Growth, C in Momentum Volatility, and D in Quality Value to the stock that is up 6.06% for the year. Revenue was $37403.0M in the last fiscal year, which compares to $36397.0M three years ago. Operating Income was $3115.0M in the last fiscal year, compared to $4445.0M three years ago. EPS was $1.6 in the last fiscal year, better than the $1.17 three years ago. ROE was 29.7% in the last year, much better than the 17.4% three years ago. The stock looks expensive as it is trading with a forward 12M P/E of 45.65.

MORE FROM FORBESNike (NKE)

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