Best Stocks To Short Today As Dow Looks To Turn Positive For 2020

Markets are looking tenacious to open the day today, after an impressive turnaround rally yesterday following the Federal Reserve’s decision to change policy on how they track inflation, allowing it to run hot and unemployment to hit lower levels without raising rates. Walmart WMT and Microsoft MSFT are leading the push this morning, after announcing a potential joint bid for TikTok’s US and other assets, in a twist that not many (if any) had predicted. The Dow Jones is looking to finish with 2020 gains at this point, the last of the major 3 indexes to reclaim the title, coming as it is about to undergo several changes soon. Q.ai’s deep learning algorithms have used Artificial Intelligence (“AI”) technology to identify the Top Shorts today, for those thinking that valuations have run too hot lately.

Sign up for the free Forbes AI Investor newsletter here to join an exclusive AI investing community and get premium investing ideas before markets open.

Chewy Inc (CHWY)

First on the Top Short list today is Chewy Inc CHWY , with AI-based factor scores of D in Technical, D in Growth, C in Momentum Volatility, and F in Quality Value. The stock has done incredibly this year, up 92.03%, providing an attractive entry point for short sellers. The company is an online destination for pet parents. It is comprising of pet food and treats, pet supplies and pet medications, other pet-health products, and pet services. As for the financials, revenue grew by 10.57% in the last fiscal year to $4846.74M, a growth of 154.68% over the last three fiscal years from $2104.29M three years ago. In contrast, Operating Income shrank by -2.14% over the last three fiscal years to $(252.73)M in the last fiscal, compared to $(275.86)M three years ago. EPS shrank by -74.68% over the last three fiscal years to $(0.63) in the last fiscal, which compares to $(2.67) three years ago. Forward 12M Revenue is expected to grow by 3.4%.

Recommended For You

MORE FROM FORBESChewy (CHWY)

Cedar Fair LP (FUN)

Next on the Top Short list today is Cedar Fair LP FUN with factor scores from our deep learning algorithms of D in Technical, D in Growth, D in Momentum Volatility, and D in Quality Value. The stock has cratered this year, down 46.57% so far, but our AI thinks this will head lower still. The company operates amusement park-resorts located in various states across USA and Canada. All their parks have facilities for people from all age groups as well as exciting rides and attractions. Revenue was $1474.92M in the last fiscal year, which compares to $1321.97M three years ago. Operating Income was $320.92M in the last fiscal year, versus $306.06M three years ago. EPS was $3.03 in the last fiscal year, compared to $3.79 three years ago. ROE was 1535.55% in the last year, over triple the 300.39% three years ago. Forward 12M Revenue is expected to grow by 109.57%.

MORE FROM FORBESCedar Fair -Lp (FUN)

Navistar International Corp (NAV)

Navistar International Corp NAV makes the Top Short list today with AI-based factor scores of F in Technical, D in Growth, D in Momentum Volatility, and C in Quality Value. The stock is up 12.09% for the year, respectable in this type of market, but allowing shorts an entry point from these levels. The company is a manufacturer of medium- and heavy-duty trucks, school buses, military vehicles, and diesel engines. Its principle markets are North America and Latin America. As for the financials, revenue grew by 11.84% over the last three fiscal years to $11251.0M in the last fiscal, compared to $8570.0M three years ago. Operating Income grew by 10.79% over the last three fiscal years to $667.0M in the last fiscal, compared to $380.0M three years ago. EPS grew by 475.14% over the last three fiscal years to $2.22 in the last fiscal, which compares to $0.32 three years ago. Forward 12M Revenue is expected to grow by 4.6% and the stock is trading with a Forward 12M P/E of 65.77.

MORE FROM FORBESNavistar International (NAV)

New York Mortgage Trust Inc (NYMT)

Another Top Short today is New York Mortgage Trust Inc with AI-based factor scores of rated D in Technical, D in Momentum Volatility, and D in Quality Value. The stock is down 56.11% for the year as the company battles with the economic effect of the global pandemic. The company is a real estate investment trust for federal income tax purposes, in the business of acquiring, investing in, financing, and managing mortgage-related and residential housing-related assets. As for the financials, revenue was $225.46M in the last fiscal year, which compares to $133.0M three years ago. Operating Income was $175.63M in the last fiscal year, compared to $91.92M three years ago. EPS was $0.64 in the last fiscal year, versus $0.66 three years ago. ROE was 10.21% in the last year, slightly better than the 9.69% three years ago. The stock is currently trading with a Forward 12M P/E of 6.23.

MORE FROM FORBESNew York Mortgage Trust (NYMT)

Insulet Corp (PODD)

Our final Top Short today is Insulet Corp with AI-based factor scores of D in Technical, D in Momentum Volatility, and D in Quality Value. The stock is up 27.43% for the year, giving an attractive short entry point for investors. The company was founded in 2000 with the goal of making continuous subcutaneous insulin infusion therapy for diabetes easier to use. As for the financials, revenue grew by 11.87% in the last fiscal year to $738.2M, a growth of 78.05% over the last three fiscal years from $463.8M three years ago. Operating Income grew by 40.2% in the last fiscal year to $50.0M, but did shrink by -1047.3% over the last three fiscal years from $(7.4)M three years ago. EPS grew by 52.16% in the last fiscal year to $0.19, also shrinking by -162.57% over the last three fiscal years from $(0.46). EPS was $0.19 in the last fiscal year, which compares to $(0.46) three years ago. ROE was 8.06% in the last year, versus (24.18%) three years ago. Forward 12M Revenue is expected to grow by 6.25%.

MORE FROM FORBESInsulet Corp (PODD)

Liked what you read? Sign up for our free Forbes AI Investor Newsletter here to get AI driven investing ideas weekly. For a limited time, subscribers can join an exclusive slack group to get these ideas before markets open.

Comments are closed.