Top Stocks To Short Today As Indices Continue Friday’s Rally

The Dow rose 425 pts (1.6%), while both the S&P and Nasdaq NDAQ rose 1.5%, as Wall Street looked to end September on a positive note after the Dow and S&P suffered 4 straight down weeks for the first time since August 2019, and the Nasdaq traded near correction territory. While tech and airline and cruise line stocks led the broader sell-off in September, today, those respective sectors led the rally. Tech was led by Facebook, Amazon AMZN , Alphabet, and Microsoft MSFT which all rose around 1.8%, and Apple AAPL and Netflix NFLX which both gained over 2%, while airlines and cruise stocks were led by Carnival CCL.U and American Airlines AAL which both rose over 4%. Bank stocks all rose in morning trading as well. While there are still concerns about a second stimulus package, about the economic impact a 2nd COVID wave could have, and concerns with China, investors were largely more optimistic today. Time will tell if this rally can sustain, or if it is only part of a pattern of more volatility. 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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Bed Bath & Beyond Inc (BBBY)

First on our list of Top Shorts is Bed Bath and Beyond BBBY . The struggling retailer, which has been forced to close numerous stores around the country, has been no stranger to this list. Our AI systems have rated Bed Bath and Beyond D in Technical, C in Growth, F in Momentum Volatility, and F in Quality Value. The stock closed up 4.31% to $14.53 on volume of 9,370,105 vs its 10-day price average of $13.15 and its 22-day price average of $12.53, but is down 11.02% for the year. EPS grew by -10.57% in the last fiscal year. Revenue was $11158.58M in the last fiscal year compared to $12349.3M three years ago, Operating Income was $(55.24)M in the last fiscal year compared to $778.22M three years ago, EPS was $(4.94) in the last fiscal year compared to $3.04 three years ago, and ROE was (28.38%) in the last year compared to 15.15% three years ago. Forward 12M Revenue is also expected to grow by 8.45% over the next 12 months.

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MORE FROM FORBESBed Bath & Beyond (BBBY)

Goodyear Tire & Rubber Co (GT)

Next on our list of Top Shorts is Goodyear Tire & Rubber. Goodyear, a major tire manufacturer out of Ohio, has had a very rough year economically, and has not had the greatest relationship with President Trump. Our AI systems have rated Goodyear B in Technical, however, has rated Goodyear F in everything else- F in Growth, F in Momentum Volatility, and F in Quality Value. The stock closed down 0.54% to $7.42 on volume of 4,025,352 vs its 10-day price average of $8.45 and its 22-day price average of $9.09, and is down 51.76% for the year. Revenue was $14745.0M in the last fiscal year compared to $15377.0M three years ago, Operating Income was $703.0M in the last fiscal year compared to $1393.0M three years ago, EPS was $(1.33) in the last fiscal year compared to $1.37 three years ago, and ROE was (6.18%) in the last year compared to 7.62% three years ago. Forward 12M Revenue is expected to grow by 5.29% over the next 12 months, and the stock is trading with a Forward 12M P/E of 123.87.

MORE FROM FORBESGoodyear (GT)

Ovintiv Inc (OVV)

Returning to our list of Top Shorts is Denver based hydrocarbon exploration and production company Ovintiv. Ovintiv has been rated C in Technical by our AI systems. However, our AI systems have given the company F ratings in everything else – F in Growth, F in Momentum Volatility, and F in Quality Value. The stock closed down 2.12% to $11.53 on volume of 548,814 vs its 10-day price average of $12.27 and its 22-day price average of $12.97, and is down 62.56% for the year. Revenue grew by 58.94% over the last three fiscal years, and was $7013.0M in the last fiscal year compared to $3892.0M three years ago. Operating Income was $729.0M in the last fiscal year compared to $1074.0M three years ago, EPS was $0.9 in the last fiscal year compared to $4.25 three years ago, and ROE was 2.69% in the last year compared to 12.87% three years ago.

MORE FROM FORBESOvintiv (OVV)

Noble Energy Inc (NBL)

Fourth on our list of Top Shorts is another struggling energy company returning to our Top Shorts list- Noble Energy Inc. Our AI systems have given Noble Energy a C rating in Technical, and F ratings everywhere else- F in Growth, F in Momentum Volatility, and F in Quality Value. The stock closed down 0.12% to $8.49 on volume of 14,721,300 vs its 10-day price average of $8.95 and its 22-day price average of $9.37, and is down 64.82% for the year. Operating Income grew by -17.45% in the last fiscal year. Revenue was $4387.0M in the last fiscal year compared to $4079.0M three years ago, Operating Income was $(1513.0)M in the last fiscal year compared to $221.0M three years ago, EPS was $(3.16) in the last fiscal year compared to $(2.38) three years ago, and ROE was (14.59%) in the last year compared to (10.39%) three years ago. Forward 12M Revenue is also expected to grow by 4.29% over the next 12 months.

MORE FROM FORBESNoble Energy (NBL)

Parsley Energy Inc (PE)

Our final Top Short of the day is another beaten up energy stock returning to our Top Shorts list- Parsley Energy. Our AI systems have given them a B in Technical, and F everywhere else- F in Growth, F in Momentum Volatility, and F in Quality Value. The stock closed down 0.44% to $9.02 on volume of 8,155,732 vs its 10-day price average of $9.54 and its 22-day price average of $10.01, and is down 52.95% for the year. Revenue grew by 87.96% over the last three fiscal years and was $1958.81M in the last fiscal year compared to $967.04M three years ago. Operating Income was $434.69M in the last fiscal year compared to $210.54M three years ago, EPS was $0.63 in the last fiscal year compared to $0.42 three years ago, and ROE was 3.28% in the last year compared to 2.98% three years ago. Forward 12M Revenue is expected to grow by 6.58% over the next 12 months, and the stock is trading with a Forward 12M P/E of 9.1.

MORE FROM FORBESParsley Energy (PE)

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