Top Stocks To Short Today As Vaccine Rally Continues

After the Dow and S&P skyrocketed to all-time intraday highs yesterday, the Dow continued its rally today. The 30 stock Dow, which consists of many COVID-recovery stocks, continued to cheer Pfizer PFE and BioNTech groundbreaking news that clinical trials of their Covid-19 vaccine showed 90% effectiveness. However, while the Dow continues its blistering run, investors are rapidly dumping tech stocks and “stay-at-home” COVID winners. The Dow traded 74 points higher, or 0.3% while the S&P 500 dipped 0.4% and the Nasdaq NDAQ slid 0.9%. There is still long-term positive sentiment on tech stocks however because investors are anticipating a divided Congress that will struggle to pass tax increases or stricter regulations. 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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American Airlines Group Inc (AAL)

American Airlines is our first Top Short of the day. Although the airline sector has been beaten down from COVID, airline stocks have surged this week due to the Pfizer vaccine news. As the largest airline in the world in terms of number of passengers carried, fleet size, and scheduled passenger-kilometers, American is sure to benefit from this vaccine news. However, as COVID continues surging to record numbers, nobody knows when travel demand will return to normal. Our AI systems rated American Airlines F in Technicals, F in Growth, C in Low Volatility Momentum, and F in Quality Value. The stock closed up 15.18% to $13.2 on volume of 231,326,211 vs its 10-day price average of $11.43 and its 22-day price average of $12.06, and is down 54.47% for the year. Revenue was $45768.0M in the last fiscal year compared to $42622.0M three years ago, Operating Income was $3889.0M in the last fiscal year compared to $5103.0M three years ago, EPS was $3.79 in the last fiscal year compared to $2.61 three years ago, and ROE was 85.32% three years ago. Forward 12M Revenue is also expected to grow by 50.84% over the next 12 months.

MORE FROM FORBESAmerican Airlines Group (AAL)

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Allegiant Travel Co (ALGT)

Allegiant Travel is our second Top Short of the day, and our second airline on the list. Allegiant Travel is the stock for Allegiant Air, an American ultra-low cost airline that is the ninth-largest commercial airline in the United States. Our AI systems rated the company D in Technicals, F in Growth, D in Low Volatility Momentum, and C in Quality Value. The stock closed up 11.0% to $153.15 on volume of 429,735 vs its 10-day price average of $135.61 and its 22-day price average of $133.83, and is down 13.01% for the year. Revenue was $1840.96M in the last fiscal year compared to $1511.2M three years ago, Operating Income was $355.48M in the last fiscal year compared to $276.52M three years ago, EPS was $14.26 in the last fiscal year compared to $12.13 three years ago, and ROE was 29.5% in the last year compared to 38.59% three years ago. Forward 12M Revenue is expected to grow by 29.96% over the next 12 months, and the stock is trading with a Forward 12M P/E of 117.29.

MORE FROM FORBESAllegiant Travel (ALGT)

Cheesecake Factory Inc (CAKE)

Restaurant chain Cheesecake Factory CAKE is next on our list of Top Shorts. The company, best known for their cheesecakes, also offers a full service menu. Along with airline stocks, restaurant stocks have been battered due to COVID, and have surged ever since the Pfizer vaccine news. Our AI systems rated Cheesecake Factory F in Technicals, F in Growth, F in Low Volatility Momentum, and D in Quality Value. The stock closed up 19.09% to $36.99 on volume of 4,391,088 vs its 10-day price average of $31.12 and its 22-day price average of $31.26, and is down 5.08% 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 26.53% over the next 12 months, and the stock is trading with a Forward 12M P/E of 30.93.

MORE FROM FORBESThe Cheesecake Factory (CAKE)

Chevron Corp (CVX)

Energy giant Chevron CVX is our fourth Top Short of the day. Chevron is one of the largest companies in the world and operates in every facet of the energy industry in over 180 countries. Our AI systems rated Chevron D in Technicals, F in Growth, D in Low Volatility Momentum, and D in Quality Value. The stock closed up 11.6% to $79.4 on volume of 23,994,392 vs its 10-day price average of $71.3 and its 22-day price average of $72.05, and is down 31.94% for the year. Revenue was $139865.0M in the last fiscal year compared to $127485.0M three years ago, Operating Income was $10478.0M in the last fiscal year compared to $3499.0M three years ago, EPS was $1.54 in the last fiscal year compared to $4.85 three years ago, and ROE was 1.89% in the last year compared to 6.26% three years ago. Forward 12M Revenue is expected to grow by 27.73% over the next 12 months, and the stock is trading with a Forward 12M P/E of 42.16.

MORE FROM FORBESChevron (CVX)

Pinterest Inc (PINS)

Our final Top Short of the day is social media platform Pinterest. Pinterest is an image sharing and social media service, and as of August 2020, had over 400 million monthly active users. Our AI systems rated Pinterest C in Technicals, C in Growth, F in Low Volatility Momentum, and F in Quality Value. The stock closed down 10.8% to $57.75 on volume of 19,593,682 vs its 10-day price average of $58.86 and its 22-day price average of $52.12, and is up 207.18% for the year. Revenue grew by 21.37% in the last fiscal year and grew by 193.31% over the last three fiscal years, while Operating Income grew by -78.3% in the last fiscal year, and EPS grew by -81.55% in the last fiscal year and grew by -41.86% 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 expected to grow by 29.87% over the next 12 months, and the stock is trading with a Forward 12M P/E of 119.02.

MORE FROM FORBESPinterest (PINS)

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