Top Stocks To Short Today As Unemployment Data Beats Expectations

Markets traded mixed to slightly lower this morning as participants digested new jobless claims data, coming in at the lowest since the pandemic shutdowns began at 1.18 million, as well as congress deliberating over the next stimulus package from the Federal Government. While the jobless claims were better than expected, all eyes will be on the big jobs report for July that is out tomorrow from the Bureau of Labor Statistics. Expectations are to show jobs growth of 1.264 million. However, if there is no stimulus deal agreed to by tomorrow, there could be increased volatility in the markets after an extremely impressive run off the lows made back in March. If you think that the market has come too far and the economic data points are going to turn, our deep learning algorithms paired with Artificial Intelligence (“AI”) technology has you covered with several Top Shorts today.

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Antero Resources Corp (AR)

First on the Top Short list today is Antero Resources Corp with factor scores assigned of D in Technical, C in Growth, F in Momentum Volatility, and D in Quality Value. The stock has done well this year, up 45.56%, but this looks like an opportune time to get short the stock. The company, based in Denver, 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. Revenue grew by 8.09% over the last three fiscal years to $3944.72M in the last fiscal, compared to $3018.68M three years ago. Operating Income was $(951.29)M in the last fiscal year versus $763.52M three years ago. EPS was $(1.11) in the last fiscal year, which compares to $1.94 three years ago. ROE was (3.79%) in the last year, much worse than the 9.46% three years ago.

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Cloudera Inc (CLDR)

Next on the Top Short list today is Cloudera Inc, United States-based software company. It has developed platforms for data management, machine learning, and advanced analytics. The company’s platform enables organizations to use vast amounts of data from a variety of sources, including the Internet of Things (IoT), to better serve and market to their customers, design connected products and services and reduce risk through greater insight from data. Our AI systems have identified factor scores of F in Technical, C in Growth, D in Momentum Volatility, and D in Quality Value for the stock that is up 2.24% for the year. Revenue grew by 2.9% in the last fiscal year to $794.19M, and grew by 119.5% over the last three fiscal years from $372.29M three years ago. Operating Income shrank by -14.11% in the last fiscal year to $(339.75)M, and shrank by -22.01% over the last three fiscal years from $(374.17)M three years ago. EPS shrank by -15.21% in the last fiscal year to $(1.2), and shrank by -68.62% over the last three fiscal years from $(3.24) three years ago. ROE was (22.44%) in the last year versus (122.79%) three years ago. Forward 12M Revenue is expected to grow by 1.68% and the stock is trading with a forward 12M P/E of 38.43.

Hecla Mining Co (HL)

Hecla Mining Co makes the Top Short list today with AI-based factor scores of D in Technical, C in Growth, F in Momentum Volatility, and F in Quality Value. The company produces and explores for silver, gold, lead, and zinc. Its main silver mines include Idaho-based Lucky Friday and Greens Creek in Alaska. Our deep learning algorithms think the 87.72% return year-to-date is unsustainable and looks like a great entry point for short sellers. Revenue grew by 2.45% in the last fiscal year to $673.27M, a growth of 19.38% over the last three fiscal years from $577.78M three years ago. Operating Income shrank by -157.89% in the last fiscal year coming in at $(44.0)M in the last fiscal compared to $57.54M three years ago. EPS grew by -43.11% in the last fiscal year and came in at $(0.2) in the last fiscal, which compares to $(0.07) three years ago. ROE was (5.88%) in the last year versus (1.94%) three years ago. Forward 12M Revenue is expected to grow by 6.3% and the stock is trading with a forward 12M P/E of 67.37.

Redfin Corp (RDFN)

Next on the Top Short list is Redfin Corp with factor scores of C in Technical, F in Growth, D in Momentum Volatility, and D in Quality Value. The stock has gained 93.43% for the year already. The company is an Internet-based real estate broker that notably pays its agents a salary as opposed to the traditional model of splitting a percentage of total commission, allowing it to charge homesellers a smaller fee to list. Revenue grew by 12.41% in the last fiscal year to $779.8M, a growth of 136.88% over the last three fiscal years from $370.04M three years ago. Operating Income shrank by -30.6% in the last fiscal year to $(79.25)M, compared to $(15.97)M three years ago. EPS shrank by -16.95% in the last fiscal year to $(0.88), and shrank by -83.6% over the last three fiscal years from $(4.47) three years ago. ROE was (22.98%) in the last year versus (9.17%) three years ago. Forward 12M Revenue is expected to grow by 7.25%.

Texas Roadhouse Inc (TXRH)

Our final Top Short today is Texas Roadhouse Inc with factor scores from our deep learning algorithms of C in Technical, D in Growth, F in Momentum Volatility, and D in Quality Value. The company is a restaurant company operating predominately in the casual dining segment with over 500 restaurants in over 45 states and a few foreign countries. The stock has gained 4.93% for the year despite massive closures across the country from the global pandemic. Revenue grew by 12.85% over the last three fiscal years to $2756.16M in the last fiscal year, which compares to $2219.53M three years ago. Operating Income was $211.12M in the last fiscal year versus $201.76M three years ago. EPS was $2.46 in the last fiscal year better than the $1.84 three years ago. ROE was 19.19% in the last year compared to 17.09% three years ago. Forward 12M Revenue is expected to grow by 12.87% and the stock trades with a forward 12M P/E of 33.59.

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