Best Stocks To Short Today As Tech-Led Nasdaq Trades Higher

The Conference Board’s consumer confidence came in lower than expected this morning at a 6 year low, coming in at 84.8 versus 93 expected, as surveyed citizens were more concerned about the spreading virus and economic consequences than last month. Markets are trading lower to relatively flat on the news, with the Nasdaq NDAQ slightly higher, per usual in the technology-heavy index. American Airlines AAL was the big news this morning, as they announced 19,000 coming job cuts when federal aid expires in October, citing weakness in the airline industry for several years to come. Q.ai’s deep learning algorithms have used Artificial Intelligence (“AI”) technology to identify the Top Shorts today.

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Bloomin’ Brands Inc (BLMN)

Bloomin’ Brands Inc BLMN is first on the Top Short list today with AI-based factor scores of C in Technical, D in Growth, F in Momentum Volatility, and D in Quality Value. The stock has not done well this year, down 43.76%, but our deep learning algorithms thinks it is going to head lower still. The company operates as a casual dining restaurant company. Its brand includes Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, and Fleming’s Prime Steakhouse and Wine Bar. As for the financials, revenue was $4139.39M in the last fiscal year, which compares to $4223.14M three years ago. Operating Income was $202.49M in the last fiscal year, versus $190.83M three years ago. EPS was $1.45 in the last fiscal year, better than the $1.02 three years ago. ROE was 115.47% in the last year, which compares to 74.77% three years ago. Forward 12M Revenue is expected to grow by 9.92% and the stock is trading with a Forward 12M P/E of 67.7.

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MORE FROM FORBESBloomin’ Brands (BLMN)

Avis Budget Group Inc (CAR)

Next on the Top Short list today is Avis Budget Group Inc CAR with AI-based factor scores of C in Technical, F in Growth, F in Momentum Volatility, and D in Quality Value. The car rental company is a provider of automotive vehicle rental and car-sharing services. Its brands include Avis, Budget, and Zipcar. Avis is targeted to serve the premium commercial and leisure segments of the travel industry, while Budget is focused on value-conscious customers. The stock has rallied recently and is now up 1.86% for the year despite massive changes happening in the industry amid the pandemic. Revenue was $9172.0M in the last fiscal year, which compares to $8848.0M three years ago. Operating Income was $911.0M in the last fiscal year, compared to $762.0M three years ago. EPS was $3.98 in the last fiscal year, worse than the $4.25 three years ago. ROE was 56.45% in the last year, about half of the 90.93% three years ago. Forward 12M Revenue is expected to grow by 17.14%

MORE FROM FORBESAvis Budget Group (CAR)

Cinemark Holdings Inc (CNK)

Stop me if you’ve seen this movie before. Next on the Top Short list is Cinemark Holdings Inc, with AI-based factor scores of C in Technical, D in Growth, D in Momentum Volatility, and D in Quality Value. The stock has been hammered this year, now down 59.94%, but our deep learning algorithms thinks more downside is coming for the stock. The company is the third- largest motion picture exhibitor in the United States. The company operates 4,568 screens in 37 states and 12 Latin American countries. As for the financials, revenue was $3283.1M in the last fiscal year, which compares to $2991.55M three years ago. Operating Income was $407.4M in the last fiscal year, versus $430.18M three years ago. EPS was $1.63 in the last fiscal year, lower than the $2.26 three years ago. ROE was 13.57% in the last year, which compares to 19.86% three years ago. Forward 12M Revenue is expected to grow by 58.24%.

MORE FROM FORBESCinemark Holdings (CNK)

Sabre Corp (SABR)

Following along the Top Shorts list is Sabre Corp SABR . Our deep learning algorithms have identified factor scores of C in Technical, F in Growth, D in Momentum Volatility, and C in Quality Value for the stock that has lost 69.01% for the year already. The company holds the number-two share of global distribution system air bookings (38.8% as of the end of 2019 versus 37.1% in 2018). Revenue was $3974.99M in the last fiscal year, which compares to $3598.48M three years ago. Operating Income was $379.88M in the last fiscal year, compared to $563.02M three years ago. EPS was $0.57 in the last fiscal year, lower than the $0.87 three years ago. ROE was 17.1% in the last year, much lower when compared to 37.7% three years ago. Forward 12M Revenue is expected to grow by 27.47%.

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Spirit Airlines Inc (SAVE)

Our final Top Short today is Spirit Airlines Inc with factor scores from our AI of C in Technical, F in Growth, D in Momentum Volatility, and F in Quality Value. The stock has been pummeled this year, down 55.2%, but our deep learning algorithms thinks a short play is best here. The airline serves the United States, Latin America, and Caribbean as an airline operator. It primarily offers customers unbundled base fares to strip out any unneeded travel amenities. Revenue grew by 8.62% over the last three fiscal years to $3830.54M in the last fiscal, which compares to $2643.55M three years ago. Operating Income was $519.11M in the last fiscal year, versus $401.62M three years ago. EPS was $4.89 in the last fiscal year, lower than the $5.99 three years ago. ROE was 16.0% in the last year, a little over half of the 26.32% three years ago. Forward 12M Revenue is expected to grow by 28.13%.

MORE FROM FORBESSpirit Airlines (SAVE)

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