Top Stocks To Short Today As Markets Set To Rally Again

Markets are set to continue where last week left off and continue the rally. The Dow rose 105 points, or 0.4%, while the S&P 500 gained 0.8% and the Nasdaq NDAQ advanced 1.2%. Investors have a big week ahead. Apple AAPL will kick off the week on Tuesday with the highly anticipated unveiling of its new iPhone. JP Morgan also kicks off third quarter earnings announcements on Thursday. Earnings estimates have continuously risen throughout the quarter, and investors are looking forward to hearing what companies report. Stimulus progress is also being cautiously monitored. While there is optimism on something passing before the election, according to Speaker Pelosi, talks were still at an impasse. A lot of other economic data will be released this week as well such as consumer price inflation on Tuesday, producer price inflation Wednesday, jobless claims Thursday, and retail sales, industrial production, and consumer sentiment Friday. as well. While concerns still remain about a second COVID wave, a stimulus impasse, and uncertainty over the upcoming election, Goldman Sachs GS expressed optimism on a vaccine and said that investors should focus on that. The deep learning algorithms at Q.ai are here for you, and 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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Cheesecake Factory Inc (CAKE)

The first Top Short of today is Cheesecake Factory CAKE . The major restaurant chain, most known for its cheesecakes as its name indicates, has been rated C in Technical, F in Growth, F in Momentum Volatility, and D in Quality Value by our AI systems. The stock closed up 1.77% to $31.67 on volume of 1,511,526 vs its 10-day price average of $29.21 and its 22-day price average of $29.11, and is down 18.73% for the year. Revenue was $2482.69M in the last fiscal year compared to $2260.5M three years ago, Operating Income was $128.15M in the last fiscal year compared to $163.19M three years ago, EPS was $2.86 in the last fiscal year compared to $3.27 three years ago, and ROE was 22.28% in the last year compared to 25.87% three years ago. Forward 12M Revenue is expected to grow by 18.39% over the next 12 months, and the stock is trading with a Forward 12M P/E of 151.75.

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MORE FROM FORBESThe Cheesecake Factory (CAKE)

Goodyear Tire & Rubber Co (GT)

Goodyear Tire & Rubber Co is our next Top Short for today. The Ohio based tire manufacturer has had a difficult year, with a C rating in Technical, and F rating everywhere else according to our AI systems- F in Growth, F in Momentum Volatility, and F in Quality Value. The stock closed flat at $9.62 on volume of 2,715,637 vs its 10-day price average of $8.62 and its 22-day price average of $8.62, and is down 37.45% 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 6.19% over the next 12 months, and the stock is trading with a Forward 12M P/E of 75.04.

MORE FROM FORBESGoodyear (GT)

Harley-Davidson Inc (HOG)

Harley-Davidson Inc HOG is our next Top Short for the day. The over century old motorcycle manufacturer has persevered through depressions, two world wars, and other economic crises. Though it recently announced a brand new electric motorcycle, the stock has underperformed. Our AI systems rated Harley Davidson F in Technical, D in Growth, F in Momentum Volatility, and C in Quality Value. The stock closed down 3.31% to $28.02 on volume of 1,851,387 vs its 10-day price average of $26.13 and its 22-day price average of $25.79, and is down 24.45% for the year. Revenue was $5361.79M in the last fiscal year compared to $5647.22M three years ago, Operating Income was $616.36M in the last fiscal year compared to $891.26M three years ago, EPS was $2.68 in the last fiscal year compared to $3.02 three years ago, and ROE was 23.68% in the last year compared to 27.72% three years ago. Forward 12M Revenue is expected to grow by 15.7% over the next 12 months, and the stock is trading with a Forward 12M P/E of 14.36.

MORE FROM FORBESHarley-Davidson (HOG)

Ping Identity Holding Corp (PING)

Ping Identity Holding Corp is our next Top Short of the day. The Denver-based software company, which provides identity services, has been rated D in Technical, C in Growth, C in Momentum Volatility, and D in Quality Value by our AI systems. The stock closed up 5.55% to $35.77 on volume of 743,507 vs its 10-day price average of $32.57 and its 22-day price average of $31.3, and is up 46.84% for the year. Revenue grew by 3.09% in the last fiscal year and grew by 45.12% over the last three fiscal years, and was $242.9M in the last fiscal year compared to $172.54M three years ago. Operating Income was also $7.36M in the last fiscal year compared to $24.28M three years ago, EPS was $(0.02) in the last fiscal year compared to $0.29 three years ago, and ROE was (0.25%) in the last year. Forward 12M Revenue is expected to grow by 7.32% over the next 12 months, and the stock is trading with a Forward 12M P/E of 132.68.

MORE FROM FORBESPing Identity Holding (PING)

Two Harbors Investment Corp (TWO)

Returning to our list of Top Shorts is Maryland based mortgage backed REIT Two Harbors Investment Corp. Two Harbors Investment Corp has been rated C in Technical, F in Growth, D in Momentum Volatility, and D in Quality Value by our AI systems. The stock closed down 0.55% to $5.41 on volume of 3,079,564 vs its 10-day price average of $5.25 and its 22-day price average of $5.21, and is down 63.22% for the year. Revenue was $1199.82M in the last fiscal year compared to $518.71M three years ago, Operating Income was $310.4M in the last fiscal year compared to $297.76M three years ago, EPS was $0.93 in the last fiscal year compared to $1.81 three years ago, and ROE was 7.02% in the last year compared to 8.84% three years ago. The stock is also trading with a Forward 12M P/E of 6.34.

MORE FROM FORBESTwo Harbors Investment (TWO)

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