Top Stocks To Short Today As Markets Decline Amid Slowed Recovery

September was bad for stocks. While October opened yesterday positively, amid news of President Trump and the first lady testing positive for the coronavirus overnight, global markets tumbled and opened firmly in the red. Furthermore, news broke that the President was experiencing minor symptoms- something considerably more concerning than being asymptomatic. The Dow opened down 430 pts, but was trading off its lows, dropping 200 points, or 0.8%. The S&P 500 also fell 0.8%, while the Nasdaq NDAQ dropped 1.3%. Trump’s COVID situation definitely stokes fears of a second wave, and builds concerns of what the impact of this could be on the election and on the economy. While some analysts believe this is an overreaction, the final jobs report before the November election also indicated a slowdown in hiring. While the unemployment rate beat the 8.2% estimate and stood at 7.9%, nonfarm payrolls rose by only 661,000 in September which was lower than the 800,000 Dow estimate. Time will tell if the markets handle all the news today. 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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Nordstrom Inc (JWN)

First on our list of Top Shorts is struggling retail giant Nordstrom JWN . Retail giants have suffered greatly this year, and Nordstrom has no exception. Our AI systems have rated Nordstroms C in Technical, F in Growth, F in Momentum Volatility, and F in Quality Value. The stock closed up 5.7% to $12.6 on volume of 10,115,270 vs its 10-day price average of $12.55 and its 22-day price average of $14.06, and is down 68.59% for the year. Revenue was $15524.0M in the last fiscal year compared to $15478.0M three years ago, Operating Income was $816.0M in the last fiscal year compared to $926.0M three years ago, EPS was $3.18 in the last fiscal year compared to $2.59 three years ago, and ROE was 53.56% in the last year compared to 47.32% three years ago. Forward 12M Revenue is also expected to grow by 18.93% over the next 12 months, and the stock is trading with a Forward 12M P/E of 26.47.

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Macerich Co (MAC)

Next on our list of Top Shorts is REIT Macerich Co MAC . REITs have been another suffering sector in 2020. Especially REITs focused on malls and shopping centers such as Macerich. Our AI systems have rated the company C in Technical, F in Growth, D in Momentum Volatility, and F in Quality Value. The stock closed up 3.24% to $7.01 on volume of 3,470,295 vs its 10-day price average of $6.92 and its 22-day price average of $7.38, and is considerably down at 72.97% for the year. Revenue was $976.43M in the last fiscal year compared to $1057.44M three years ago, Operating Income was $255.12M in the last fiscal year, compared to $298.46M three years ago, EPS was $0.68 in the last fiscal year compared to $1.02 three years ago, and ROE was 3.41% in the last year compared to 3.85% three years ago.

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Noble Energy Inc (NBL)

Next on our list of Top Shorts is Noble Energy NBL . Noble, which has been on our Top Shorts list several times, is part of the beaten down energy sector, and has strongly underperformed this year. Our AI systems have given Noble Energy ratings of D in Technical, F in Growth, F in Momentum Volatility, and F in Quality Value. The stock closed down 2.46% to $8.34 on volume of 18,660,350 vs its 10-day price average of $8.69 and its 22-day price average of $9.1, and is down 65.44% 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.

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Spirit Airlines Inc (SAVE)

Returning to the list, and last on our list of Top Shorts, is Spirit Airlines SAVE . Airlines have been another suffering sector in 2020, and Spirit has been one of the most beaten down stocks in the sector. Our AI systems have rated the low cost airline B in Technical, F in Growth, D in Momentum Volatility, and F in Quality Value. The stock closed up 1.74% to $16.38 on volume of 5,104,509 vs its 10-day price average of $16.35 and its 22-day price average of $17.16, and is down 59.7% for the year. Revenue grew by 8.62% over the last three fiscal years and was $3830.54M in the last fiscal year compared to $2643.55M three years ago. Operating Income was $519.11M in the last fiscal year compared to $401.62M three years ago, EPS was $4.89 in the last fiscal year compared to $5.99 three years ago, and ROE was 16.0% in the last year compared to 26.32% three years ago. Forward 12M Revenue is also expected to grow by 24.65% over the next 12 months.

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