Top Stocks To Short Today As Markets Try To Shake September Sell-Off

Markets tried to shake off yesterday’s rout which continued a pretty miserable September. It slightly recovered some losses today as the Nasdaq NDAQ and Big Tech led the way gaining 0.7%. Amazon AMZN led the way, rising 2.4% after an upgrade to buy from hold at Bernstein. Facebook, Apple AAPL and Microsoft MSFT were also higher. The Dow also rose more than 100 pts or 0.3%, and the S&P 500 rose 0.5%. Investors also liked Fed Chairman Jerome Powell’s remarks that the Fed would support the economy “for as long as it takes.” However, gains were somewhat muted due to concerns of another national lockdown in the UK with Prime Minister Boris Johnson ordering bars and restaurants closed between 10 p.m. and 5 a.m. Concerns also still remained on the passing of a second stimulus package before the November elections, as well as concerns about European banks due to a report showing potential complicity in money laundering. 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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Bandwidth Inc (BAND)

For the second straight day, first on our list of Top Shorts is IP communications company Bandwidth Inc. BAND Our AI systems have assigned Bandwidth ratings of D in Technical, D in Growth, C in Momentum Volatility, and D in Quality Value. The stock closed up 5.77% to $163.61 on volume of 1,235,641 vs its 10-day price average of $149.51 and its 22-day price average of $153.11, and is also up 154.76% for the year. Revenue grew by 15.14% in the last fiscal year and grew by 64.34% over the last three fiscal years, while Operating Income grew by -37.17% in the last fiscal year. Revenue was $232.59M in the last fiscal year compared to $162.96M three years ago, Operating Income was $(17.42)M in the last fiscal year compared to $15.09M three years ago, EPS was $0.1 in the last fiscal year compared to $0.37 three years ago, and ROE was 1.32% in the last year compared to 15.68% three years ago. Forward 12M Revenue is also expected to grow by 6.18% over the next 12 months.

MORE FROM FORBESBandwidth (BAND)

Cit Group Inc (CIT)

Financial holding company Cit Group Inc CIT is next on our list of Top Shorts. Our AI systems have rated Cit Group B in Technical, F in Growth, D in Momentum Volatility, and F in Quality Value. The stock closed down 5.29% to $17.01 on volume of 2,087,038 vs its 10-day price average of $18.16 and its 22-day price average of $19.04, and is down 63.01% for the year. Revenue was $2228.9M in the last fiscal year compared to $2375.9M three years ago, Operating Income was $641.5M in the last fiscal year compared to $721.2M three years ago, EPS was $5.28 in the last fiscal year compared to $2.79 three years ago, and ROE was 8.62% in the last year compared to 2.99% three years ago. Forward 12M Revenue is also expected to grow by 0.59% over the next 12 months, and the stock is trading with a Forward 12M P/E of 17.28.

MORE FROM FORBESCIT Group (CIT)

Pinterest Inc (PINS)

For the third straight trading day, social media giant Pinterest Inc PINS is on our list of Top Shorts. Our AI systems have given Pinterest ratings of F in Technical, C in Growth, F in Momentum Volatility, and F in Quality Value. Pinterest closed down 0.03% to $36.87 on volume of 11,057,560 vs its 10-day price average of $35.97 and its 22-day price average of $35.63, and stock is up 96.12% for the year. Revenue grew by 7.11% in the last fiscal year and grew by 158.86% over the last three fiscal years, Operating Income grew by -69.22% in the last fiscal year, and EPS grew by -78.13% in the last fiscal year and by -31.08% over the last three fiscal years. Revenue was $1142.76M in the last fiscal year compared to $472.85M three years ago, Operating Income was $(1388.87)M in the last fiscal year compared to $(137.93)M three years ago, EPS was $(3.24) in the last fiscal year compared to $(1.03) three years ago, and ROE was (93.9%) in the last year. Forward 12M Revenue is also expected to grow by 15.75% over the next 12 months.

MORE FROM FORBESPinterest (PINS)

Carvana Co (CVNA)

Carvana is fourth on our list of Top Shorts. The company is a major innovator and disruptor in the car industry, and is a strong online used car retailer. Our AI systems, however, have rated the company C in Technical, D in Growth, D in Momentum Volatility, and F in Quality Value. The stock closed up 5.4% to $173.67 on volume of 1,254,948 vs its 10-day price average of $173.8 and its 22-day price average of $192.39 and is up 79.13% for the year. Revenue grew by 12.06% in the last fiscal year and grew by 414.05% over the last three fiscal years, while EPS grew by -25.0% over the last three fiscal years. Revenue was $3939.9M in the last fiscal year compared to $858.87M three years ago, Operating Income was $(272.53)M in the last fiscal year compared to $(155.31)M three years ago, EPS was $(2.45) in the last fiscal year compared to $(4.23) three years ago, and ROE was (173.9%) in the last year compared to (200.9%) three years ago. Forward 12M Revenue is also expected to grow by 23.71% over the next 12 months.

MORE FROM FORBESCarvana (CVNA)

Red Robin Gourmet Burgers (RRGB)

Our final Top Short of the day is gourmet burger restaurant chain Red Robin RRGB . Restaurants have been one of the hardest hit industries thanks to the COVID pandemic, and Red Robin has been no exception, closing many locations. Our AI systems have given the company ratings of F in Technical, C in Growth, F in Momentum Volatility, and D in Quality Value. The stock closed down 7.75% to $13.21 on volume of 823,451 vs its 10-day price average of $13.28 and its 22-day price average of $11.89, and is down 59.97% for the year. Revenue was $1315.01M in the last fiscal year compared to $1387.57M three years ago, Operating Income was $5.42M in the last fiscal year compared to $45.95M three years ago, EPS was $(0.61) in the last fiscal year compared to $2.31 three years ago, and ROE was (2.13%) in the last year compared to 8.16% three years ago. Forward 12M Revenue is also expected to grow by 13.97% over the next 12 months.

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