Top Stocks To Short Today Amid Bond Headwinds

The forced liquidation of positions held by multibillion-dollar family office Archegos Capital Management continued hurting media stocks and bank stocks for another day. But the primary headwind for markets remained: bond yields vs. growth stocks. With the 10-year yield touching 1.77% for the first time in 14 months, stocks like Apple
AAPL
and Microsoft
MSFT
slid more than 1%, while Tesla
TSLA
fell more than 2%. Although the Dow
DOW
and S&P 500 are up roughly 7.2% and 4.2% for the month, the Nasdaq
NDAQ
has struggled. It is quietly approaching correction territory for the third time since February. As investors digested this news and data, the Dow Jones fell 40 points from yesterday’s record close, the S&P 500 dropped 0.3%, and the Nasdaq dipped 0.7%. 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.

Sign up for the free Forbes AI Investor newsletter here to join an exclusive AI investing community and get premium investing ideas before markets open.

Progyny Inc (PGNY)

Our first Top Short of the day is Progyny Inc. Progyny Inc is a leading U.S. fertility benefits management company. Our AI systems rated the company F in Growth, F in Low Volatility Momentum, and D in Quality Value. The stock closed down 1.71% to $43.14 on volume of 637,746 vs its 10-day price average of $46.63 and its 22-day price average of $45.4, and is up 0.47% for the year. Revenue was $344.86M in the last fiscal year compared to $105.4M three years ago, Operating Income was $17.67M in the last fiscal year compared to $(3.45)M three years ago, EPS was $0.47 in the last fiscal year compared to $0.04 three years ago, and ROE was 33.04% in the last year compared to (46.91%) three years ago. The stock is also trading with a Forward 12M P/E of 99.55.

MORE FROM FORBESProgyny (PGNY)

Laureate Education Inc (LAUR)

Laureate Education Inc is our next Top Short. Laureate Education is a Baltimore-based education company, and owns and operates universities with campuses in Mexico and Peru. Our AI systems rated the company D in Technicals, D in Growth, C in Low Volatility Momentum, and F in Quality Value. The stock closed down 2.36% to $13.63 on volume of 575,135 vs its 10-day price average of $13.94 and its 22-day price average of $13.91, and is down 4.75% for the year. Revenue was $1024.92M in the last fiscal year compared to $1144.57M three years ago, Operating Income was $112.32M in the last fiscal year compared to $48.42M three years ago, EPS was $(2.93) in the last fiscal year compared to $1.74 three years ago, and ROE was (12.62%) in the last year compared to (9.41%) three years ago. 

MORE FROM FORBESLaureate Education (LAUR)

Zovio Inc (ZVO)

Zovio Inc is today’s third Top Short. Zovio Inc is an education technology services company, and provides data management and software to curriculum and financial aid, including enrollment, retention, academic, and tuition for higher educational institutions, upskilling courses, degree programs, and certifications for employers. Our AI systems rated the company C in Technicals, D in Growth, F in Low Volatility Momentum, and C in Quality Value. The stock closed down 9.38% to $4.25 on volume of 386,419 vs its 10-day price average of $5.05 and its 22-day price average of $5.14, and is down 7.81% for the year. Revenue was $397.12M in the last fiscal year compared to $443.37M three years ago, Operating Income was $(2.26)M in the last fiscal year compared to $3.94M three years ago, EPS was $(1.53) in the last fiscal year compared to $0.17 three years ago, and ROE was (61.9%) in the last year compared to 3.7% three years ago. The stock is also trading with a Forward 12M P/E of 14.17. 

MORE FROM FORBESZovio (ZVO)

Pinterest Inc (PINS)

Our next Top Short today is social media platform Pinterest
PINS
. 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 0.45% to $69.38 on volume of 9,403,465 vs its 10-day price average of $71.1 and its 22-day price average of $71.95, and is up 1.92% 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 86.67. 

MORE FROM FORBESPinterest (PINS)

Redfin Corp (RDFN)

Our final Top Short 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 Technicals, F in Growth, D in Low Volatility Momentum, and D in Quality Value. The stock closed down 2.71% to $62.47 on volume of 1,449,366 vs its 10-day price average of $67.77 and its 22-day price average of $69.53, and is down 7.09% for the year. Revenue was $886.09M in the last fiscal year compared to $486.92M three years ago, Operating Income was $7.31M in the last fiscal year compared to $(43.93)M three years ago, EPS was $(0.23) in the last fiscal year, compared to $(0.49) three years ago, and ROE was (3.85%) in the last year compared to (13.82%) three years ago.

MORE FROM FORBESRedfin (RDFN)

Liked what you read? Sign up for our free Forbes AI Investor Newsletter here to get AI driven investing ideas weekly. For a limited time, subscribers can join an exclusive slack group to get these ideas before markets open.

Source link

Related Articles

[td_block_social_counter facebook="tagdiv" twitter="tagdivofficial" youtube="tagdiv" style="style8 td-social-boxed td-social-font-icons" tdc_css="eyJhbGwiOnsibWFyZ2luLWJvdHRvbSI6IjM4IiwiZGlzcGxheSI6IiJ9LCJwb3J0cmFpdCI6eyJtYXJnaW4tYm90dG9tIjoiMzAiLCJkaXNwbGF5IjoiIn0sInBvcnRyYWl0X21heF93aWR0aCI6MTAxOCwicG9ydHJhaXRfbWluX3dpZHRoIjo3Njh9" custom_title="Stay Connected" block_template_id="td_block_template_8" f_header_font_family="712" f_header_font_transform="uppercase" f_header_font_weight="500" f_header_font_size="17" border_color="#dd3333"]

Latest Articles