Top Stocks To Short Today As Dow Enters Week With Gains

Stocks were mixed this morning with the Dow surging over 250 points at one point, the S&P 500 relatively flat, and the tech-heavy Nasdaq NDAQ falling in the early trading session. The executive order by the White House to continue the unemployment benefit at a reduced rate of $400 per week, which was originally at $600, may be challenged in court but in the meantime it puts political pressure on Congress to reach a deal to help out the 30+ million Americans out of work. With reopening of schools around the corner, it is pertinent for the markets that the fiscal stimulus gets worked out, and quickly. The Fed can only do so much from the monetary side at this point. Investors were also keeping an eye on the US and China tensions, as China announced it would apply sanctions on 11 US citizens, including senators Ted Cruz and Marco Rubio. If you’re looking for some places to hedge your portfolio, our deep learning algorithms paired with Artificial Intelligence (“AI”) technology has you covered with the Top Shorts today.

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Cerence Inc (CRNC)

First on the Top Short list today is Cerence Inc with AI-based factor scores of F in Technical, C in Growth, D in Momentum Volatility, and F in Quality Value. Given that the stock is up 121.72% for the year already, those factor scores are setting up for an excellent short entry point. The company is a United  UAL States-based software company. It is involved in developing mobility-based solutions for drivers and their cars. Revenue grew by 6.07% in the last fiscal year to $303.32M, a growth of 31.46% over the last three fiscal years from $244.73M three years ago. EPS grew by 44.78% over the last three fiscal years to $2.76 in the last fiscal year, compared to $1.3 three years ago. Operating Income was $36.2M in the last fiscal year versus $66.28M three years ago. ROE was 9.73% in the last year. Forward 12M Revenue is expected to grow by 8.22% and the stock is trading with a forward 12M P/E of 35.12.

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MORE FROM FORBESCerence (CRNC)

Devon Energy Corp (DVN)

Next on the Top Short list is Devon Energy Corp, one of the largest independent exploration and production companies in North America. The firm’s asset base in spread throughout onshore North America with franchise development assets in the Stack and Delaware Basin. AI-based factor scores of C in Technical, F in Growth, F in Momentum Volatility, and C in Quality Value have been identified for the stock that has lost 53.04% for the year already. Operating Income grew by 135.59% in the last fiscal year to $177.0M, a growth of 193.66% over the last three fiscal years from $142.0M three years ago. Revenue was $5969.0M in the last fiscal year versus $6340.0M three years ago. EPS was $(0.89) in the last fiscal year, which compares to $1.7 three years ago. ROE was (1.05%) in the last year compared to 0.25% three years ago.

MORE FROM FORBESDevon Energy (DVN)

Expedia Group Inc (EXPE)

Expedia Group Inc is the next Top Short today, as the coronavirus pandemic crushes the tourism industry. Our deep learning algorithms have identified factor scores of B in Technical, F in Growth, F in Momentum Volatility, and F in Quality Value for the stock that is down 25.61% for the year so far. The company is the world’s largest online travel agency by bookings, offering services for lodging (70% of total 2019 sales), air tickets (7%), rental cars, cruises, in-destination, and other (14%), and advertising revenue (9%). Revenue was $12067.0M in the last fiscal year, which compares to $10060.0M three years ago. Operating Income was $961.0M in the last fiscal year versus $626.0M three years ago. EPS was $3.77 in the last fiscal year in comparison to $2.42 three years ago. ROE was 10.19% in the last year which compares to 6.28% three years ago. Forward 12M Revenue is expected to grow by 16.58% over the next 12 months.

Ovintiv Inc (OVV)

Moving along the Top Short list today is Ovintiv Inc as identified by our AI systems. Factor scores of C in Technical, F in Growth, F in Momentum Volatility, and F in Quality Value set this stock up to go lower this year, even as it has lost 50.36% year-to-date already. The company is an independent oil and gas producer with key assets in the Permian, Eagle Ford, Montney, and Duvernay areas. Revenue grew by 58.94% over the last three fiscal years to $7013.0M in the last fiscal, compared to $3892.0M three years ago. Operating Income was $729.0M in the last fiscal year versus $1074.0M three years ago. EPS was $0.9 in the last fiscal year, which compares to $4.25 three years ago. ROE was 2.69% in the last year, much worse than the 12.87% three years ago.

MORE FROM FORBESOvintiv (OVV)

United Airlines Holdings Inc (UAL)

Our final Top Short today is United Airlines Holdings Inc, a formerly Warren Buffett owned stock that was sold earlier this year as the pandemic massively slowed air travel. Our AI systems have identified factor scores of C in Technical, F in Growth, D in Momentum Volatility, and F in Quality Value. United Airlines is the world’s third- largest airline by scheduled revenue passenger miles. United’s hubs include San Francisco, Chicago, Houston, Denver, Los Angeles, New York/Newark, and Washington, D.C. As for the financials, revenue was $43259.0M in the last fiscal year, compared to $37784.0M three years ago. Operating Income was $4568.0M in the last fiscal year versus $3690.0M three years ago. EPS was $11.58 in the last fiscal year, which compares to $7.06 three years ago. ROE was 27.9% in the last year about flat when compares to 24.64% three years ago. Forward 12M Revenue is expected to grow by 17.54%, but will depend heavily on air traffic recovery.

MORE FROM FORBESUnited Airlines Holdings (UAL)

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