Best Stocks To Short Today As Dow Trades Flat Amid News Of Shakeup – Forbes

Posted on August 26, 2020

Stock market chart and data on dark blue background — getty

This morning markets were flat after reaching new all-time highs yesterday. A soon-to-be Dow Jones entrant, Salesforce CRM , reported blowout earnings after the bell yesterday and looks to be up in the double digits today. On the economic side, U.S. durable goods orders jumped a massive 11.2% in July, beating expectations of 4.3% from Refinitiv quite easily. And while tensions remain high between the U.S. and China, trade talks resumed and the Office of the U.S. Trade Representative said that both sides made progress and are still committed to the phase 1 trade deal. Q.ai’s deep learning algorithms have used Artificial Intelligence (“AI”) technology to identify the Top Shorts today.

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Bed Bath & Beyond Inc (BBBY)

Bed Bath & Beyond Inc BBBY is the first Top Short today with AI-based factor scores of D in Technical, C in Growth, F in Momentum Volatility, and F in Quality Value. The company is a home furnishings retailer, operating around 1,500 stores in all 50 states, Puerto Rico, Canada, and Mexico. Stores carry an assortment of branded bed and bath accessories, kitchen textiles, and cooking supplies. With the global pandemic this year the company has not fared well, down 24.56% for the year, but a massive drop from the highs. Our deep learning algorithms thinks there is more downside here still. EPS shrank by -10.57% in the last fiscal year to $(4.94), compared to $3.04 three years ago. Revenue was $11158.58M in the last fiscal year, which compares to $12349.3M three years ago. Operating Income was $(55.24)M in the last fiscal year, much worse than the $778.22M three years ago. ROE was (28.38%) in the last year, compared to 15.15% three years ago. Forward 12M Revenue is expected to grow by 7.97%.

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Simple Moving Average of Bed Bath & Beyond Inc (BBBY) — Price of Bed Bath & Beyond Inc compared to its Simple Moving Average

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Cinemark Holdings Inc (CNK)

Next on the Top Short list is Cinemark Holdings Inc with AI-based factor scores of C in Technical, D in Growth, D in Momentum Volatility, and D in Quality Value. The stock is down 24.56% for the year already. The company is the third- largest motion picture exhibitor in the United States. The company operates 4,568 screens in 37 states and 12 Latin American countries. As for the financials, revenue was $3283.1M in the last fiscal year, compared to $2991.55M three years ago. Operating Income was $407.4M in the last fiscal year, which compares to $430.18M three years ago. EPS was $1.63 in the last fiscal year, lower than the $2.26 three years ago. ROE was 13.57% in the last year, versus 19.86% three years ago. Forward 12M Revenue is expected to grow by 58.24% over the next 12 months.

CNX Resources Corporation (CNX)

CNX Resources Corporation CNX is next on the Top Short list with AI-based factor scores of D in Technical, F in Growth, F in Momentum Volatility, and C in Quality Value. The stock has gained 37.92% for the year but our deep learning algorithms thinks lower is likely here and the rally should be used as a great short entry point. Revenue was $1544.24M in the last fiscal year, which compares to $1198.37M three years ago. Operating Income was $183.87M in the last fiscal year, compared to $48.08M three years ago. EPS was $(0.42) in the last fiscal year, much worse when compared to $1.65 three years ago. ROE was 0.64% in the last year, versus 7.53% three years ago. Forward 12M Revenue is expected to grow by 8.13% and the stock is trading with a Forward 12M P/E of 33.03.

Callaway Golf Co (ELY)

Despite golf being recognized as one sport that is low risk of contagion spread, Callaway Golf Co ELY makes the next Top Short list as the economic pressure is larger than the benefits provided. Our deep learning algorithms have identified factor scores of C in Technical, D in Growth, F in Momentum Volatility, and D in Quality Value for the stock that is down only 8.38% for the year so far. The company manufactures golf clubs. It sells its line of Big Bertha, Great Big Bertha, and Biggest Big Bertha oversized metal woods and conventional-style metal woods, irons, wedges, and putters. As for the financials, revenue grew by 40.88% over the last three fiscal years to $1701.06M in the last fiscal year, which compares to $1048.74M three years ago. Operating Income was $138.99M in the last fiscal year, versus $78.84M three years ago. EPS was $0.82 in the last fiscal year, compared to $0.42 three years ago. ROE was 10.55% in the last year, better than the 6.57% three years ago. Forward 12M Revenue is expected to grow by 11.86% and the stock is trading with a Forward 12M P/E of 24.87.

Sabre Corp (SABR)

Our final Top Short has been on this column several times lately in Sabre Corp. The stock has not done well this year, down 69.14%, but our deep learning algorithms thinks momentum will continue to the downside. Our AI systems have identified factor scores of C in Technical, F in Growth, D in Momentum Volatility, and C in Quality Value for the company. Revenue was $3974.99M in the last fiscal year, which compares to $3598.48M three years ago. Operating Income was $379.88M in the last fiscal year, versus $563.02M three years ago. EPS was $0.57 in the last fiscal year, compared to $0.87 three years ago. ROE was 17.1% in the last year, much lower than the 37.7% three years ago. Forward 12M Revenue is expected to grow by 27.47%.