Best Stocks To Short Today Amid Gold’s Record-Breaking Run

Markets were higher this morning with mega-cap tech outperforming the indexes, as a big week of corporate earnings were ahead, and politicking on capitol hill looks set to possibly delay coronavirus stimulus negotiations. Gold, however, was the major talking point this morning as it breached to new all-time highs over the weekend and looks set to tackle the $2,000 mark at some point if upward momentum can continue. The rally was ahead of the Federal Reserve Policy Meeting this week, where expectations are not for a new round of stimulus, but also not for stopping money printing anytime soon. This week in earnings will feature McDonald’s MCD , Pfizer PFE , Alphabet, Apple AAPL , and AMD, to name a few, so it should be a telling week for stocks one way or another. Given the rally of over 44% from the lows made in March for the S&P 500, it might take a lot of good news to keep the upward move going. If you think it is better to short from these levels, our deep learning algorithms paired with Artificial Intelligence (“AI”) technology have you covered with the Top Shorts today.

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American Eagle Outfitters Inc (AEO)

First on the list is American Eagle Outfitters Inc AEO with factor scores assigned from our AI of C in Technical, D in Growth, F in Momentum Volatility, and D in Quality Value. The company is an apparel and accessory retailer with company stores throughout North America, China, Hong Kong, and the United Kingdom. The company leases all its stores, and most stores are in the United States. Unfortunately, with a pandemic keeping more shoppers at home, this outfitter may well run into major trouble, and the stock has already lost 32.21% for the year. Revenue grew by 4.69% over the last three fiscal years to $4308.21M in the last fiscal year, compared to $3795.55M three years ago. Operating Income was $318.14M in the last fiscal year which was lower than the $331.07M three years ago. EPS was $1.12 in the last fiscal year, essentially flat compared $1.13 three years ago. ROE was 15.09% in the last year versus 16.66% three years ago. Forward 12M Revenue is expected to grow by 6.68% and the stock is trading with a forward 12M P/E of 22.62.

MGM Resorts International (MGM)

Next on the Top Short list is MGM Resorts International, the largest resort operator on the Las Vegas Strip with 35,000 guest rooms and suites, representing almost 25% of all units in the market. The company’s Vegas properties include MGM Grand, Mandalay Bay, Mirage, Luxor, New York-New York, and a 50% ownership stake in CityCenter. Of course, crowded spaces and big events is the company’s major revenue maker, which is not possible currently. The stock has lost 53.09% for the year and our AI systems have identified factor scores of C in Technical, F in Growth, D in Momentum Volatility, and F in Quality Value. Revenue grew by 11.13% over the last three fiscal years to $12462.78M in the last fiscal, compared to $10395.44M three years ago. EPS grew by 41.2% in the last fiscal year to $3.88, a growth of 63.93% over the last three fiscal years from $3.34 three years ago. Operating Income was $1418.5M in the last fiscal year versus $1575.96M three years ago. ROE was 18.97% in the last year, a small loss compared to 19.23% three years ago. Forward 12M Revenue is expected to grow by 0.3%.

Marathon Petroleum Corp (MPC)

Another Top Short today is Marathon Petroleum Corp MPC with AI-based factor scores of D in Technical, F in Growth, D in Momentum Volatility, and D in Quality Value for the stock that has already lost 37.49% for the year. The company is an independent refiner with 16 refineries in the midcontinent, West Coast, and Gulf Coast of the United States with total throughput capacity of 3.0 million barrels per day. Its retail segment sells transportation fuels through 5,000 stores. Revenue grew by 61.37% over the last three fiscal years to $124112.0M in the last fiscal, compared to $75053.0M three years ago. Operating Income was $6069.0M in the last fiscal year versus $3653.0M three years ago. EPS was $3.97 in the last fiscal year, much worse than the $6.7 three years ago. ROE was 7.38% in the last year which compares to 17.68% three years ago. Forward 12M Revenue is expected to grow by 8.96%.

Plains All American Pipeline LP (PAA)

In the oil and gas midstream industry, the next Top Short is Plains All American Pipeline LP. The company provides transportation, storage, processing, fractionation, and marketing services for crude oil, refined products, natural gas liquids, liquefied petroleum gas, and related products. Their assets are geographically diverse, spanning the United States and Alberta, Canada, but heavily concentrated in major U.S. shale basins like the Permian, Stack, and Bakken, a sector that may struggle if oil prices cannot hold on to a recent surge in prices. Our deep learning algorithms have identified factor scores of C in Technical, D in Growth, D in Momentum Volatility, and D in Quality Value for the stock that has lost 57.17% for the year already. Revenue grew by 27.99% over the last three fiscal years and was $33669.0M in the last fiscal, compared to $26223.0M three years ago. Operating Income grew by 28.17% over the last three fiscal years to $2027.0M in the last fiscal, compared to $1303.0M three years ago. EPS was $2.65 in the last fiscal year, versus $0.95 three years ago. ROE was 17.26% in the last year much better than the 8.65% three years ago. Forward 12M Revenue is expected to grow by 2.11% and the stock is trading with a forward 12M P/E of 6.81.

Synchrony Financial (SYF)

Our final Top Short today is a repeated stock on this list in Synchrony Financial. The stock has lost 34.94% for the year already and our AI systems have identified factor scores of C in Technical, F in Growth, F in Momentum Volatility, and D in Quality Value. The company is formerly GE Capital’s retail finance business and is the largest provider of private-label credit cards in the United States based on purchase volume and receivables. EPS grew by 38.98% over the last three fiscal years. Revenue was $9132.0M in the last fiscal year which compares to $7071.0M three years ago. Operating Income was $5181.0M in the last fiscal year compared to $3637.0M three years ago. EPS was $5.56 in the last fiscal year, much better than the $2.42 three years ago. ROE was 25.18% in the last year which compares to 13.61% three years ago. Forward 12M Revenue is expected to grow by 4.75% and the stock is trading with a forward 12M P/E of 10.35.1

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