Top Stocks To Short Today As Investors Buckle Up For Bond Yields

For the second consecutive day, growth stocks opened the day with significant losses as the 10-year yield popped to its highest level since last January. Although temporarily, the Fed eased concerns yesterday on interest rates and inflation, the 10-year had a mind of its own Thursday morning and spooked investors. The 10-year yield popped 11 basis points to 1.75%, while the 30-year rate climbed 6 basis points and breached 2.5% for the first time since August 2019. Rising bond yields coupled with a dovish Fed keeping interest rates at 0% for the foreseeable future makes inflation all but a certainty. Plus, rising bond yields can have a potential negative impact on future earnings for growth stocks. As a result, the Dow Jones, supported by bank stocks, traded flat, while the S&P fell by 0.6% and the Nasdaq
NDAQ
dropped 1.3%. 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 for the third consecutive day. 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 0.65% to $41.5 on volume of 345,399 vs its 10-day price average of $41.97 and its 22-day price average of $40.27, and is up 11.41% 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 161.17.

MORE FROM FORBESCal-Maine Foods (CALM)

Liberty Media Formula One (FWONK)

Liberty Media Formula One
FWONK
 is our second Top Short for the second day in a row. The company, which also has interests with Sirius XM Radio and the MLB’s Atlanta Braves, owns iconic global motorsports franchise Formula One. Our AI systems rated the media conglomerate B in Technicals, D in Low Volatility Momentum, and D in Quality Value. The stock closed down 0.31% to $47.71 on volume of 727,381 vs its 10-day price average of $46.23 and its 22-day price average of $45.66, and is up 16.74% for the year. Revenue was $1145.0M in the last fiscal year compared to $1827.0M three years ago, Operating Income was $(444.0)M in the last fiscal year compared to $(110.0)M three years ago, EPS was $(2.57) in the last fiscal year compared to $(0.65) three years ago, and ROE was (10.07%) in the last year compared to (2.67%) three years ago.

MORE FROM FORBESLiberty Media Formula One (FWON.K:)

Tripadvisor Inc (TRIP)

Tripadvisor is our next Top Short. The company is an online travel company that operates both a website and mobile app with user-generated content and ratings. Its platform also offers online hotel reservations and bookings for transportation, lodging, travel experiences, and restaurants. Our AI systems rated Tripadvisor F in Technicals, F in Growth, D in Low Volatility Momentum, and F in Quality Value. The stock closed up 4.11% to $61.03 on volume of 3,485,901 vs its 10-day price average of $54.86 and its 22-day price average of $49.6, and is up 115.58% for the year. Revenue was $604.0M in the last fiscal year compared to $1615.0M three years ago, Operating Income was $(297.0)M in the last fiscal year compared to $183.0M three years ago, EPS was $(2.14) in the last fiscal year compared to $0.81 three years ago, and ROE was (28.24%) in the last year compared to 7.97% three years ago.

MORE FROM FORBESTripAdvisor (TRIP)

Progyny Inc (PGNY)

Our fourth 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 up 4.11% to $61.03 on volume of 3,485,901 vs its 10-day price average of $54.86 and its 22-day price average of $49.6, and is up 13.48% 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 112.45. 

MORE FROM FORBESProgyny (PGNY)

Carvana Co (CVNA)

Carvana is today’s final 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 0.93% to $286.28 on volume of 1,141,939 vs its 10-day price average of $271.17 and its 22-day price average of $282.59, and is up 21.17% 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)

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