Best Stocks To Short Today As Markets Struggle Despite Lower Jobless Claims

The Fed’s announcement yesterday that they would hold interest rates steady at near 0% through 2023 did little to excite the markets yesterday, as ⅔ of the indices were heavily in the red. The S&P closed down 0.46% while the Nasdaq gave back much of their gains of this week down 1.25%. It seems to be the same today as well. While low interest rates usually entice investors, in this case, the announcement also means that there is a lower chance for more stimulus. Today, the Dow is seeing major drops, down nearly 320 pts (0.90%), the S&P is down 1.50%, and the Nasdaq, just as last week, is leading the markets lower down 2.0%. Despite US Continuing Jobless Claims coming in at slightly better than expected numbers of 860k vs the 875k, there is still a long road to pre-pandemic levels of recovery. New-home construction saw a slight decrease in August, and the Philadelphia Fed gauge saw September manufacturing decline.

An OPEC+ panel also warned of signs of decline in oil overhang, and that a rise in COVID cases in certain countries may curb oil demand despite. Airlines, cruises, and big tech names were largely spurring the broader market’s decline due to mixed messages on a COVID vaccine timeline. Carnival and Norwegian both fell more than 3%, while United Airlines and American Airlines dipped at least 2% each. Big tech all dropped significantly, with Facebook, Apple, Amazon, Netflix, and Alphabet all down at least 2%, and Tesla dropping over 5.5%. Snowflake, which had the largest software IPO in history yesterday, also dropped over 8% after more than doubling yesterday. For investors looking to make sense of this wild market, the deep learning algorithms at Q.ai have crunched the data to give you a set of Top Shorts. Our Artificial Intelligence (“AI”) systems assessed each firm on parameters of Technical, Growth, Momentum Volatility, and Quality Value to find the best short plays.

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Bandwidth Inc (BAND)

The first on our list of Top Shorts today is IP communications company Bandwidth Inc. Our AI systems have them rated D in Technical, D in Growth, C in Momentum Volatility, and D in Quality Value. The stock closed down 0.95% to $144.855 on volume of 427,574 vs its 10-day price average of $149.08 and its 22-day price average of $152.53. The stock however is up 125.56% for the year. Revenue grew by 15.14% in the last fiscal year and grew by 64.34% over the last three fiscal years, while Operating Income grew by -37.17% in the last fiscal year. Revenue was $232.59M in the last fiscal year compared to $162.96M three years ago, Operating Income was $(17.42)M in the last fiscal year compared to $15.09M three years ago, and EPS was $0.1 in the last fiscal year compared to $0.37 three years ago. ROE was also 1.32% in the last year compared to 15.68% three years ago. Forward 12M Revenue is expected to grow by 6.18% over the next 12 months.

MORE FROM FORBESBandwidth (BAND)

Macerich Co (MAC)

Macerich Co is next on the list of Top Shorts. The REIT is rated C in Technical, F in Growth, D in Momentum Volatility, and F in Quality Value. The stock closed up 4.15% to $7.78 on volume of 5,265,031 vs its 10-day price average of $7.77 and its 22-day price average of $7.78. The stock is also down 70.0% for the year. Revenue was $976.43M in the last fiscal year compared to $1057.44M three years ago, Operating Income was $255.12M in the last fiscal year compared to $298.46M three years ago, and EPS was $0.68 in the last fiscal year compared to $1.02 three years ago. ROE was also 3.41% in the last year, compared to 3.85% three years ago.

MORE FROM FORBESMacerich (MAC)

Cerence Inc (CRNC)

Cerence Inc is the next on our list of today’s Top Shorts. Our AI systems have rated the automotive tech company C in Technical, D in Growth, F in Momentum Volatility, and F in Quality Value. The stock closed up 6.37% to $61.6 on volume of 1,383,984 vs its 10-day price average of $53.57 and its 22-day price average of $53.97. The stock has moved way higher this year, up 171.37% for the year. Revenue grew by 6.07% in the last fiscal year and grew by 31.46% over the last three fiscal years, while EPS grew by 44.78% over the last three fiscal years. Revenue was $303.32M in the last fiscal year compared to $244.73M three years ago, Operating Income was $36.2M in the last fiscal year compared to $66.28M three years ago, and EPS was $2.76 in the last fiscal year compared to $1.3 three years ago. ROE was 9.73% in the last year, and Forward 12M Revenue is expected to grow by 8.22% over the next 12 months. The stock is currently trading with a Forward 12M P/E of 42.99.

MORE FROM FORBESCerence (CRNC)

Matador Resources Co (MTDR)

Matador Resources Co is fourth on our list of Top Shorts. Matador Resources is in the much maligned energy sector, and engages in exploration, development, production and acquisition of oil and natural gas. Our AI systems have given the company scores of C in Technical, F in Growth, F in Momentum Volatility, and D in Quality Value. The stock closed up 4.38% to $9.05 on volume of 2,961,987 vs its 10-day price average of $8.86 and its 22-day price average of $9.36. The stock, much like the broader energy sector, has had a rough year, and is down 50.14% YTD. Revenue grew by 64.02% over the last three fiscal years while Operating Income grew by 45.1% over the last three fiscal years. Revenue was $962.9M in the last fiscal year compared to $538.88M three years ago, Operating Income was $235.48M in the last fiscal year compared to $160.84M three years ago, and EPS was $0.75 in the last fiscal year compared to $1.23 three years ago. ROE was 6.56% in the last year vs 14.16% three years ago, and Forward 12M Revenue is expected to grow by 3.61% over the next 12 months. The stock is currently trading with a Forward 12M P/E of 36.13.

MORE FROM FORBESMatador Resources (MTDR)

Spirit Airlines Inc (SAVE)

Our final Top Short is Spirit Airlines Inc. The struggling airliner is rated C in Technical, F in Growth, D in Momentum Volatility, and F in Quality Value by our AI systems. The stock closed up 2.6% to $18.55 on volume of 8,707,226 vs its 10-day price average of $17.83 and its 22-day price average of $17.74, however, it is down 54.37% for the year. Revenue grew by 8.62% over the last three fiscal years and was $3830.54M in the last fiscal year compared to $2643.55M three years ago. Operating Income was $519.11M in the last fiscal year compared to $401.62M three years ago, and EPS was $4.89 in the last fiscal year compared to $5.99 three years ago. ROE was also 16.0% in the last year vs 26.32% three years ago, and Forward 12M Revenue is expected to grow by 25.0% over the next 12 months.

MORE FROM FORBESSpirit Airlines (SAVE)

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