Top Stocks To Short Today As Market Wobbles Amid Massive Sell-Off
A day after the worst single-day drop in three months, equity markets are wavering between plunging into a deeper sell-off or recouping their losses. Another positive jobs report Friday morning helped give the Dow a brief boost, as the U.S. added more nonfarm payroll positions than anticipated, and the unemployment rate fell to 8.4% (9.8% expected.) But the S&P 500 continued its fall, and the NASDAQ was down over 430 points (3.79%) as of the time of writing. The latter index fell back to under 12,000, and briefly under 11,000, after breaking out to 12,053 earlier this week thanks to tech momentum. That said, there’s a lot of dispersion between sectors. While all of the S&P’s twelve categories were down yesterday, three of them (energy, utilities, and financials) managed to staunch losses to 1.6% each. For investors who anticipate that this wave of sell-offs will continue, Q.ai’s Artificial Intelligence (“AI”) deep learning algorithms have identified five Top Shorts for today. These companies have been specially curated by our systems on the basis of parameters like Technical, Growth, Momentum Volatility, and Quality Value.
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American Airlines Group Inc (AAL)
First up is American Airlines (AAL). The Fort Worth, TX-based airline is the world’s largest by several metrics, and one of the “Big Three” carriers along with Delta and Southwest. It announced some difficult news yesterday, cutting over 83,000 flights from its October schedule as the COVID-19 pandemic continues unabated. Our systems graded the stock a C in Technical, an F in Growth, a D in Momentum Volatility, and an F in Quality Value. Shares closed up 0.98% to $13.36 on a volume of 86,390,770, and against a 10-day price average of $13.11 and a 22-day price average of $13.09. The stock is down 54.07% for the year, having been left behind by the summer bull market. Revenue was $45768.0M in the last fiscal year. Operating income for the airline was $3889.0M in the last fiscal year, compared to $5103.0M three years ago, reflecting worsening conditions for aviation. EPS was $3.79 in the last fiscal year, up from $2.61 there years ago. Forward 12M revenue is expected to grow by 24.28% over the next 12 months.
Axsome Therapeutics Inc (AXSM)
Axsome Therapeutics (AXSM) is a New York City-based advanced pharmaceutical research company, specializing in the treatment of difficult Central Nervous System disorders. Its shares have stayed firmly in the penny stock band until the 2018-2019 calendar year, which saw prices appreciate 50X. Our AI network rated the stock a C in Technical, D in Growth, D in Momentum Volatility, and a D in Quality Value. Shares closed down 3.57% to $71.13 on a volume of 297,889, which makes this stock a pass for investors seeking highly liquid investments. The 10-day price average was $75.43 and the 22-day average was $77.45. The stock is down 29.79% for the year, and ROE was an abysmal -76.1% in the last fiscal year, compared to an even worse -151.2% there years ago.
Beyond Meat Inc (BYND)
Beyond Meat (BYND), the LA-based vegetarian meat substitute manufacturer, has exploded into a household name over the past several years. Our networks rated the stock a D in Technical, D in Growth, F in Momentum Volatility, and C in Quality Value. Its shares closed up 0.08% to $129.8 on a volume of 10,864,310, against a 10-day price average of $129.43 and a 22-day price average of $128.32. The stock is up 71.6% for the year, having grown revenue by 34.56% in the last fiscal year, and 1130.32% over the past three. Operating income, however, has fallen by -117.73% over the past three fiscal years, and EPS plunged by -72.91% over the past fiscal year, compared to -98.57% over the past three. In absolute terms, that’s an operating income of $4.38M for the last fiscal year, compared to -$21.4M three years ago. EPS was -$0.29 per share in the last fiscal year, compared to -$5.57 three years ago. The stock’s ROE was -5.39% in the last fiscal year, compared to -76.43% three years ago. Forward 12M revenue is expected to grow by 23.64% over the next 12 months.
Goodyear Tire and Rubber Co. (GT)
Goodyear Tire (GT), the storied Akron, Ohio-based tire manufacturer, earned a B in Technical, F in Growth, F in Momentum Volatility, and F in Quality Value from our AI stock analyzer. Shares closed down 2.55% to $9.57 on a volume of 2,352,622, compared to a relatively flat 10-day price average of $9.70 and a 22-day price average of $9.69. The stock is down 37.78% for the year, but the company earned a robust $14745.0M in revenue in the last fiscal year, only slightly lower than $15377.0M three years ago. Operating income was $703.0M in the last fiscal year, compared to $1393.0M three years ago. Goodyear’s ROE was -6.18% in the last year, which is markedly lower than 7.62% three years ago. The company’s EPS was -$1.33 in the past fiscal year, compared to $1.37 three years ago. Forward 12M revenue is expected to grow by 5.52% over the next 12 months.
Western Digital Corp (WDC)
A storied data storage provider, Western Digital (WDC) is the San Jose, CA-based operator of such brands as SanDisk, G-Technology, and WD. Our AI systems assigned the stock a D in Technical, C in Growth, F in Momentum Volatility, and a D in Quality Value. Shares closed down 2.96% to $37.71 against a volume of 7,364,717, compared to a 10-day price average of $36.23 and a 22-day price average of $36.48. The stock is down 42.53% for the year, and revenue has fallen sharply to $16736.0M in the last fiscal year from $20647.0M three years ago. Operating income has also sharply contracted by almost an order of magnitude, from $3830.0M three years ago to $368.0M over the last fiscal year. EPS was -$0.84 in the last fiscal year, as opposed to $2.2 three years ago. ROE was -2.56% in the past year, and compares to 5.88% three years ago. Shares trade with a forward 12M P/E of 11.64.
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