Top Stocks To Short Today As Stimulus Hopes Send Nasdaq To Record Highs

Stocks continue to rotate this week between good days and bad days. Today was one of the good days, as the S&P and Nasdaq NDAQ hit intraday records on stimulus hopes. This morning, the Dow Jones climbed 135 points, or 0.5%, while the S&P 500 and Nasdaq also both gained 0.5%. The Nasdaq also closed at another record high yesterday. Utilities and materials were the best-performing sectors in the S&P 500, rising more than 1% each, while Apple AAPL rose nearly 1% to lead the Dow higher. Investors were largely optimistic today as Congress inched closer towards a $900 billion stimulus deal that would include a new round of direct payments to individuals. However, that package would exclude liability protections for businesses and state and local aid- two contentious areas of partisan divide. As COVID continues surging to record highs, jobless claims also disappointed for a second consecutive week. Jobless claims totaled 885,000 last week, and hit their highest levels since early September. This was also significantly worse than the expected 808,000. 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 Technicals, Growth, Low Volatility Momentum, and Quality Value to find the best short plays.

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Avalara Inc (AVLR)

Financial software company Avalara is our first Top Short today. Avalara provides software for automated tax compliance and other tax related services. Our AI systems rated the company F in Technicals, C in Growth, C in Low Volatility Momentum, and D in Quality Value. The stock closed up 0.02% to $174.38 on volume of 674,308 vs its 10-day price average of $167.98 and its 22-day price average of $166.35, and is up 123.42% for the year. Revenue grew by 21.18% in the last fiscal year and grew by 117.41% over the last three fiscal years, while EPS grew by -6.78% in the last fiscal year and grew by -94.4% over the last three fiscal years. Revenue was $382.42M in the last fiscal year compared to $213.16M three years ago, Operating Income was $(55.87)M in the last fiscal year compared to $(54.16)M three years ago, EPS was $(0.68) in the last fiscal year compared to $(11.39) three years ago, and ROE was (17.52%) in the last year compared to (2520.18%) three years ago. Forward 12M Revenue is also expected to grow by 19.29% over the next 12 months.

MORE FROM FORBESAvalara (AVLR)

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Chewy Inc (CHWY)

Pet food, supplies, and pet products e-commerce company Chewy Inc. CHWY is our second Top Short of the day. Our AI systems rated Chewy D in Technicals, D in Growth, D in Low Volatility Momentum, and F in Quality Value. The stock closed up 3.28% to $94.12 on volume of 5,025,911 vs its 10-day price average of $80.84 and its 22-day price average of $74.69, and is up 217.76% for the year. Revenue grew by 33.24% in the last fiscal year and grew by 206.89% over the last three fiscal years, Operating Income grew by -31.68% in the last fiscal year and grew by -37.41% over the last three fiscal years, and EPS grew by -31.86% in the last fiscal year and grew by -83.83% over the last three fiscal years. Revenue was $4846.74M in the last fiscal year compared to $2104.29M three years ago, Operating Income was $(252.73)M in the last fiscal year compared to $(275.86)M three years ago, and EPS was $(0.63) in the last fiscal year compared to $(2.67) three years ago. Forward 12M Revenue is also expected to grow by 18.08% over the next 12 months.

MORE FROM FORBESChewy (CHWY)

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Inphi Corp (IPHI)

Inphi Corp IPHI is our next Top Short today for the second day in a row. Inphi produces 10G-800G high-speed analog and mixed-signal semiconductor components for networking, manufacturers, and cloud and telecom service providers. Our AI systems rated the company F in Technicals, D in Growth, F in Low Volatility Momentum, and C in Quality Value. The stock closed up 0.03% to $154.93 on volume of 504,049 vs its 10-day price average of $151.35 and its 22-day price average of $150.7, and is up 103.19% for the year. Revenue grew by 63.64% in the last fiscal year and grew by 71.83% over the last three fiscal years, Operating Income grew by -63.7% in the last fiscal year and grew by -22.59% over the last three fiscal years, and EPS grew by -21.29% in the last fiscal year and grew by -28.72% over the last three fiscal years. Revenue was $365.64M in the last fiscal year compared to $348.2M three years ago, Operating Income was $(49.45)M in the last fiscal year compared to $(23.18)M three years ago, EPS was $(1.61) in the last fiscal year compared to $(1.78) three years ago, and ROE was (20.44%) in the last year compared to (17.14%) three years ago. Forward 12M Revenue is expected to grow by 13.17% over the next 12 months, and the stock is trading with a Forward 12M P/E of 43.06.

MORE FROM FORBESInphi (IPHI)

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Maxar Technologies Inc (MAXR)

Space technology company Maxar Technologies MAXR is our next Top Short for the third consecutive day. The Colorado-based company specializes in manufacturing communication, Earth observation, radar, on-orbit servicing satellites, satellite products, and related services. Our AI systems rated Maxar C in Technicals, F in Growth, F in Low Volatility Momentum, and C in Quality Value. The stock closed down 0.62% to $35.15 on volume of 991,600 vs its 10-day price average of $33.08 and its 22-day price average of $30.06, and is up 113.42% for the year. Operating Income grew by -85.11% over the last three fiscal years, while EPS grew by 243.48% in the last fiscal year and grew by 327.58% over the last three fiscal years. Revenue was $1666.0M in the last fiscal year compared to $1257.0M three years ago, Operating Income was $(7.0)M in the last fiscal year compared to $(94.0)M three years ago, EPS was $1.81 in the last fiscal year compared to $1.46 three years ago, and ROE was 11.62% in the last year compared to (4.15%) three years ago. Forward 12M Revenue is also expected to grow by 4.74% over the next 12 months. 

MORE FROM FORBESMaxar Technologies (MAXR)

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Redfin Corp (RDFN)

Our final Top Short today is Redfin Corp RDFN . Redfin is a Seattle-based real estate brokerage, and operates with a unique business model. With Redfin’s business model, sellers pay Redfin a small fee to list the seller’s home, in addition to another small fee charged to the seller to compensate the brokerage representing the buyer. Customers who buy with Redfin are only charged 1% to list their home, and also receive a portion of the brokerages commission back (called the Redfin Refund). Our AI systems rated Redfin D in Technical, D in Growth, D in Momentum Volatility, and D in Quality Value. The stock closed up 7.17% to $72.75 on volume of 4,018,969 vs its 10-day price average of $58.94 and its 22-day price average of $51.85, and is up 236.34% for the year. Revenue grew by 12.18% in the last fiscal year and grew by 136.4% over the last three fiscal years, while Operating Income grew by -68.25% in the last fiscal year, and EPS grew by -49.13% in the last fiscal year and grew by -89.96% over the last three fiscal years. Revenue was $779.8M in the last fiscal year compared to $370.04M three years ago, Operating Income was $(79.25)M in the last fiscal year compared to $(15.97)M three years ago, EPS was $(0.88) in the last fiscal year, compared to $(4.47) three years ago, and ROE was (22.98%) in the last year compared to (9.17%) three years ago. Forward 12M Revenue is also expected to grow by 25.96% over the next 12 months.

MORE FROM FORBESRedfin (RDFN)

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