Investing

Top Stocks To Short Today As Nasdaq Plummets And Fears Of Inflation Increase

The Nasdaq has been red hot this week after bond yields and inflation fears temporarily stabilized. However, after the 10-year popped 8 basis points overnight, those ugly headwinds returned to close out the week. The Dow rose 50 points, while the S&P 500 fell 0.4%, and the Nasdaq dropped 1.4%. Although the Nasdaq is up 3.7% week-to-date, Ned Davis Research put out a report estimating that the index could fall another 20% if the 10-year yield exceeds 2%. On the backdrop of this news, stocks like Tesla
TSLA
fell more than 3%, while Netflix
NFLX
and Facebook declined 2%, and Apple
AAPL
, Amazon
AMZN
, and Microsoft
MSFT
all fell at least 1%. Time will tell when this instability for tech stocks will end. 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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Cal-Maine Foods Inc (CALM)

Cal-Maine Foods
CALM
 
is our first Top Short today. Cal-Maine is a Mississippi-based producer of fresh eggs, and is responsible for nearly 25% of all egg consumption in the US. Our AI systems rated the company C in Technicals, F in Growth, C in Low Volatility Momentum, and D in Quality Value. The stock closed down 0.61% to $42.69 on volume of 208,034 vs its 10-day price average of $40.58 and its 22-day price average of $39.75, and is up 14.6% for the year. Revenue grew by 6.47% in the last fiscal year, Operating Income grew by 1027.3% in the last fiscal year, and EPS grew by 262.69% in the last fiscal year. Revenue was $1351.61M in the last fiscal year compared to $1502.93M three years ago, Operating Income was $6.27M in the last fiscal year compared to $181.73M three years ago, EPS was $0.38 in the last fiscal year compared to $2.6 three years ago, and ROE was 1.83% in the last year compared to 14.02% three years ago. Forward 12M Revenue is expected to grow by 3.28% over the next 12 months, and the stock is trading with a Forward 12M P/E of 165.79. 

MORE FROM FORBESCal-Maine Foods (CALM)

Carvana Co (CVNA)

Carvana is today’s next Top Short. The company is a major innovator and disruptor in the car industry, and is a robust online used car dealer. Our AI systems rated Carvana F in Technicals, F in Growth, D in Low Volatility Momentum, and F in Quality Value. The stock closed up 6.37% to $277.04 on volume of 1,247,717 vs its 10-day price average of $276.9 and its 22-day price average of $284.41, and is up 17.26% for the year. Revenue was $5586.56M in the last fiscal year compared to $1955.47M three years ago, Operating Income was $(332.4)M in the last fiscal year compared to $(220.73)M three years ago, EPS was $(2.63) in the last fiscal year compared to $(2.03) three years ago, and ROE was (93.05%) in the last year compared to (100.5%) three years ago.

MORE FROM FORBESCarvana (CVNA)

Hess Corp (HES)

Hess Corp
HES
 
is our third Top Short of the day. Hess is a large energy company involved in the exploration and production of crude oil and natural gas. Our AI systems rated Hess C in Technicals, D in Growth, F in Low Volatility Momentum, and F in Quality Value. The stock closed up 3.24% to $73.19 on volume of 2,748,620 vs its 10-day price average of $69.76 and its 22-day price average of $65.95, and is up 38.62%  for the year. Revenue was $4543.0M in the last fiscal year compared to $6152.0M three years ago, Operating Income was $(259.0)M in the last fiscal year compared to $755.0M three years ago, EPS was $(10.15) in the last fiscal year compared to $(1.1) three years ago, and ROE was (35.4%) in the last year compared to (0.99%) three years ago.

MORE FROM FORBESHess (HES)

Sabre Corp (SABR)

Our fourth Top Short of the day is Sabre Corp
SABR
. Sabre, which was initially founded by American Airlines
AAL
in 1960, is the largest global distribution systems provider for air bookings in North America. Our AI systems rated Sabre F in Technicals, F in Growth, D in Low Volatility Momentum, and F in Quality Value. The stock closed up 3.56% to $16.0 on volume of 13,686,733 vs its 10-day price average of $15.27 and its 22-day price average of $14.13, and is up 42.73% for the year. Revenue was $1334.1M in the last fiscal year compared to $3866.96M three years ago, Operating Income was $(912.96)M in the last fiscal year compared to $570.34M three years ago, EPS was $(4.42) in the last fiscal year compared to $1.22 three years ago, and ROE was (194.51%) in the last year compared to 40.76% three years ago.

MORE FROM FORBESSabre (SABR)

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, F in Growth, F in Low Volatility Momentum, and D in Quality Value. The stock closed up 4.22% to $71.88 on volume of 10,074,783 vs its 10-day price average of $72.73 and its 22-day price average of $78.87, and is up 5.6% for the year. Revenue was $1692.66M in the last fiscal year compared to $755.93M three years ago, Operating Income was $(53.0)M in the last fiscal year compared to $(74.72)M three years ago, EPS was $(0.22) in the last fiscal year compared to $(0.5) three years ago, and ROE was (6.02%) in the last year compared to (7.02%) three years ago. The stock is also trading with a Forward 12M P/E of 86.16.

MORE FROM FORBESPinterest (PINS)

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