Top Stocks To Short Today As Markets Rally After Tuesday’s Late Drop

Stocks were in the green this morning after a late drop into the red in yesterday’s session. There was some more vaccine boosts giving positivity to the markets, as President Donald Trump said that the US government will purchase 100 million doses of Moderna’s experimental coronavirus vaccine, which is in the late-stage of testing currently. Reopening stocks like cruise lines and airlines were well in the green, as well as bank stocks as the economic recovery would be seen greater if there was something to combat COVID-19. Big tech also recovered some losses, with the Nasdaq well in the green just under 2% this morning. There is still uncertainty about that second coronavirus stimulus bill, as Congress can still not come to an agreement, despite executive orders signed over the weekend. Our deep learning algorithms and Artificial Intelligence (“AI”) systems have gone through the data this morning to provide you the Top Shorts for today.

Antero Resources Corp (AR)

First on the Top Short list is Antero Resources Corp with AI-based factor scores of D in Technical, C in Growth, F in Momentum Volatility, and D in Quality Value. The company engages in the exploration for and production of natural gas and natural gas liquids in the United States and Canada. At the end of 2019, the company reported proven reserves of 19 trillion cubic feet of natural gas equivalent. The stock is up 50.58% for the year already, providing short sellers with an excellent entry point. As for the financials, revenue grew by 8.09% over the last three fiscal years to $3944.72M in the last fiscal, which compares to $3018.68M three years ago. Operating Income was $(951.29)M in the last fiscal year compared to $763.52M three years ago. EPS was $(1.11) in the last fiscal year, much worse than the $1.94 three years ago. ROE was (3.79%) in the last year versus 9.46% three years ago.

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MORE FROM FORBESAntero Resources (AR)

Cardlytics Inc (CDLX)

Next on the Top Short list is Cardlytics Inc, a company that operates an advertising platform within financial institutions digital channels, which include online, mobile, email and various real-time notifications. The company operates through three segments, Cardlytics Direct U.S. and U.K., and Other Platform Solutions. Our deep learning algorithms have identified factor scores of D in Technical, D in Growth, D in Momentum Volatility, and F in Quality Value for the stock that is up 16.11% for the year. Revenue grew by 52.99% over the last three fiscal years to $210.45M in the last fiscal, compared to $130.36M three years ago. EPS shrank by -81.51% over the last three fiscal years to $(0.72) in the last fiscal, compared to $(7.86) three years ago. Operating Income was $(17.32)M in the last fiscal year, versus $(17.1)M three years ago. ROE was (17.56%) in the last year. Forward 12M Revenue is expected to grow by 16.97%.

MORE FROM FORBESCardlytics (CDLX)

Devon Energy Corp (DVN)

Devon Energy Corp DVN makes the Top Short list today with AI-based factor scores of C in Technical, F in Growth, F in Momentum Volatility, and C in Quality Value. The stock is down 52.07% for the year but our deep learning algorithms thinks the momentum will continue to the downside. The company is 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, and is a repeat on this column. 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, which compares to $6340.0M three years ago. EPS was $(0.89) in the last fiscal year, versus $1.7 three years ago. ROE was (1.05%) in the last year, which compares to 0.25% three years ago.

MORE FROM FORBESDevon Energy (DVN)

Callaway Golf Co (ELY)

Next on the Top short list is Callaway Golf Co ELY , the manufacturer of golf clubs. It sells its line of Big Bertha, Great Big Bertha, and Biggest Big Bertha oversized metal woods and conventional-style metal woods, irons, wedges, and putters. Our AI systems have identified factor scores of C in Technical, D in Growth, F in Momentum Volatility, and D in Quality Value for the stock that is down 12.27% for the year. Revenue grew by 40.88% over the last three fiscal years. Revenue was $1701.06M in the last fiscal year, which compares to $1048.74M three years ago. Operating Income was $138.99M in the last fiscal year versus $78.84M three years ago. EPS was $0.82 in the last fiscal year higher than the $0.42 three years ago. ROE was 10.55% in the last year in comparison to 6.57% three years ago. Forward 12M Revenue is expected to grow by 11.83% and the stock is trading with a forward 12M P/E of 23.86.

MORE FROM FORBESCallaway Golf (ELY)

Pebblebrook Hotel Trust (PEB)

Our final Top Short today is Pebblebrook Hotel Trust, a hotel REIT that currently owns upper-upscale and luxury hotels with 14,013 rooms across 56 hotels in the United States. The stock is down 53.21% for the year already but our AI systems thinks the next leg is likely lower for the company, especially struck by a lack of travel due to the global pandemic. Factor scores have been identified as C in Technical, F in Growth, D in Momentum Volatility, and D in Quality Value from our deep learning algorithms. Revenue grew by 42.29% over the last three fiscal years. Revenue was $1612.21M in the last fiscal year versus $769.32M three years ago. Operating Income was $241.1M in the last fiscal year, which compares to $120.57M three years ago. EPS was $0.63 in the last fiscal year, much lower than the $1.19 three years ago. ROE was 3.13% in the last year, about half of the 6.44% three years ago. Forward 12M Revenue is expected to grow by 28.2%, but this will largely depend on pandemic-related travelling.

MORE FROM FORBESPebblebrook Hotel Trust (PEB)

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