Top Stocks To Short As Markets Begin Day With Signs Of Recovery

After a generally rough past two weeks, markets opened the day pointing to positive gains. Stocks cheered on the news of coronavirus vaccine progress, as well as the potential M&A between Oracl e ORCL and TikTok. All indexes rose as the beaten down tech index Nasdaq NDAQ gained nearly 2% back from its nearly 10% drop over the last 2 weeks. The Dow also rose over 300 pts (1.2%), and the S&P climbed nearly 1.5%. The markets are surely beginning the week off on an optimistic foot. Major early day movers were Apple AAPL , which lost nearly 7% last week and is expected to announce the release of its new watch and iPad Air, Oracle which just announced their potential acquisition of TikTok, chipmaker Nvidia NVDA which agreed to buy SoftBank’s Arm, and pharmaceutical companies Pfizer PFE and Astrazaneca based on vaccine trials resuming and optimistic news.

One thing to surely keep in mind, and that will almost definitely move the markets, is the latest Fed meeting. The Federal Reserve begins their two-day September meeting tomorrow, and will release its policy statement Wednesday afternoon followed by Chairman Jay Powell’s news conference. While Powell is expected to make a statement on the economic outlook and interest rates, Powell will also release forecasts for 2023 for the first time. For investors looking to make sense of a volatile and potentially overheated 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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Michaels Cos Inc (MIK)

First on the list of today’s top shorts is Michaels Cos Inc (MIK). Michaels is a specialty arts and crafts retailer, and the largest provider of arts, crafts, framing, floral & wall decor in North America. Our deep learning algorithms have given Michaels ratings of C in Technical, D in Growth, F in Momentum Volatility, and C in Quality Value. The stock closed up 2.16% to $10.41 on volume of 4,321,579 vs its 10-day price average of $10.65 and its 22-day price average of $10.03. The stock is currently up 22.9% for the year. Revenue was $5072.04M in the last fiscal year compared to $5361.96M three years ago, Operating Income was $572.6M in the last fiscal year compared to $735.39M three years ago, and EPS was $1.78 in the last fiscal year compared s to $2.1 three years ago. Forward 12M Revenue is expected to grow by 4.07% over the next 12 months, while the stock is trading with a Forward 12M P/E of 4.46.

MORE FROM FORBESMichaels Stores (MIK)

Occidental Petroleum Group (OXY)

Next on the list of the Top Shorts is Occidental Petroleum Group. OXY has been struggling for a while now, and energy as a sector has had an awfully rough 2020. Our AI systems have identified factor scores of D in Technical, D in Growth, F in Momentum Volatility, and C in Quality Value for the oil company. The stock closed up 0.29% to $10.22 on volume of 35,175,700 vs its 10-day price average of $11.81 and its 22-day price average of $12.89. The stock is down 76.0% for the year. Revenue grew by 5.48% in the last fiscal year and grew by 71.97% over the last three fiscal years. Revenue was also $20393.0M in the last fiscal year compared to $12508.0M three years ago. Operating Income was $2579.0M in the last fiscal year compared to $694.0M three years ago, and EPS was $(1.22) in the last fiscal year compared to $1.7 three years ago. ROE was also (1.82%) in the last year compared to 6.23% three years ago.

MORE FROM FORBESOccidental Petroleum (OXY)

Sunrun Inc (RUN)

The third short we have on the list is Sunrun Inc RUN , a company specializing in providing homes with solar panels. Our AI systems have rated Sunrun D in Technical, C in Growth, F in Momentum Volatility, and F in Quality Value. The stock closed down 0.55% to $55.88 on volume of 2,418,701 vs its 10-day price average of $54.7 and its 22-day price average of $51.12. The stock, however, is up a striking 293.94% for the year. Revenue grew by 59.89% over the last three fiscal years, and was $858.58M in the last fiscal year compared to $532.54M three years ago. Operating Income, however, has been in the red at $(218.01)M in the last fiscal year compared to $(181.13)M three years ago. EPS was also $0.21 in the last fiscal year compared to $1.16 three years ago. ROE was also heavily negative at (25.67%) in the last year compared to (23.71%) three years ago. Forward 12M Revenue is expected to grow by 16.52% over the next 12 months, and the stock is trading with a Forward 12M P/E of 90.88.

MORE FROM FORBESSunrun (RUN)

Terex Corp (TEX)

The fourth short on our list is materials manufacturer Terex Corp TEX . Our AI systems have given Terex ratings of D in Technical, F in Growth, D in Momentum Volatility, and C in Quality Value. The stock closed up 1.57% to $19.41 on volume of 641,081 vs its 10-day price average of $19.73 and its 22-day price average of $19.99. The stock is down 35.66% for the year. Revenue was $4353.1M in the last fiscal year compared to $3793.7M three years ago, Operating Income was $335.1M in the last fiscal year compared to $232.9M three years ago, and EPS was $0.76 in the last fiscal year compared to $1.36 three years ago. ROE was also 23.39% in the last year compared to 8.09% three years ago, and Forward 12M Revenue is expected to grow by 6.94% over the next 12 months. The stock is currently rading with a Forward 12M P/E of 45.16.

MORE FROM FORBESTerex (TEX)

Western Digital Corp (WDC)

The final stock on the shorts list is chipmaker and hardware producer Western Digital WDC . While Western Digital has been a mainstay in the computing space for years now, the stock has suffered greatly over the last year, and is down 43.05% YTD. Our AI systems have rated Western Digital D in Technical, C in Growth, F in Momentum Volatility, and D in Quality Value. The stock closed up 3.09% to $37.37 on volume of 6,350,171 vs its 10-day price average of $37.49 and its 22-day price average of $36.1. Revenue was $16736.0M in the last fiscal year compared to $20647.0M three years ago, Operating Income was $368.0M in the last fiscal year compared to $3830.0M three years ago, and EPS was $(0.84) in the last fiscal year compared to $2.2 three years ago. ROE was (2.56%) in the last year compared to 5.88% three years ago, and the stock is trading with a very low Forward 12M P/E of 11.5.

MORE FROM FORBESWestern Digital (WDC)

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