Market

Alaska Airlines And Redfin Among Today’s Top Shorts As The Dow, S&P, And Nasdaq Rebound Following Janet Yellen’s Comments On Interest Rates And Inflation

The market is see-sawing from day to day and week to week. After tech saw its worst sell-off since March yesterday, it led the broader market higher while reopening plays fell. Stocks like Apple 
AAPL
rose 1.6%, and Tesla 
TSLA
gained 0.7%. This comes a day after each fell 3.5% and 1.7%, respectively. Meanwhile, gaming giant Activision Blizzard
ATVI
surged 5% after reporting better-than-expected earnings. While there is still concern that we may be near or at a market top, that discussion could be for another day where stocks sharply sell-off. Today, the Dow Jones rose 10 points, the S&P 500 rose 0.3%, and Nasdaq
NDAQ
popped by 0.6%. Meanwhile, Treasury Secretary Janet Yellen conceded that the Fed may have to hike interest rates amid further massive spending, just before noting that she’s “not predicting or recommending” rate hikes and adding that she doesn’t “think there’s going to be an inflationary problem.” But investors are still confronting inflation fears that are moving the markets. If you’re looking for a way to play this market, 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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Alaska Air Group Inc (ALK)

Alaska Air Group is our first Top Short today. Alaska Air Group, Inc. is a holding company, which through its subsidiaries, Alaska Airlines, Inc
ALK
and Horizon Air Industries, Inc
ALK
, engages in the provision of air transportation services. Our AI systems rated the company F in Technicals, D in Growth, D in Low Volatility Momentum, and F in Quality Value. The stock closed down 3.1% to $66.56 on volume of 1,887,800 vs its 10-day price average of $68.52 and its 22-day price average of $69.74, and is up 35.17% for the year. EPS grew by -7.9% in the last fiscal year. Revenue was $3566.0M in the last fiscal year compared to $8264.0M three years ago, Operating Income was $(1711.0)M in the last fiscal year compared to $793.0M three years ago, EPS was $(10.72) in the last fiscal year compared to $3.52 three years ago, and ROE was (36.18%) in the last year compared to 12.12% three years ago. Forward 12M Revenue is also expected to grow by 14.22% over the next 12 months.

MORE FROM FORBESAlaska Air Group (ALK)

Carvana Co (CVNA)

Carvana is our second 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 C in Technicals, F in Growth, D in Low Volatility Momentum, and F in Quality Value. The stock closed down 0.27% to $289.23 on volume of 1,632,231 vs its 10-day price average of $284.71 and its 22-day price average of $277.89, and is up 22.42% 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)

Maxar Technologies Inc (MAXR)

Space technology company Maxar Technologies
MAXR
 
is our third Top Short today. The Colorado-based company specializes in manufacturing communication, Earth observation, radar, on-orbit servicing satellites, satellite products, and related services. Our AI systems rated Maxar F in Technicals, D in Growth, F in Low Volatility Momentum, and C in Quality Value. The stock closed down 25.87% to $29.08 on volume of 9,788,239 vs its 10-day price average of $38.31 and its 22-day price average of $37.95, and is down 19.89% for the year. Revenue grew by 0.64% in the last fiscal year, Operating Income grew by 15.69% in the last fiscal year and grew by -142.45% over the last three fiscal years, and EPS grew by -120.05% over the last three fiscal years. Revenue was $1723.0M in the last fiscal year compared to $1804.0M three years ago, Operating Income was $51.0M in the last fiscal year compared to $(139.0)M three years ago, EPS was $4.99 in the last fiscal year compared to $(21.52) three years ago, and ROE was (5.42%) in the last year compared to (69.84%) three years ago. Forward 12M Revenue is expected to grow by 6.29% over the next 12 months, and the stock is trading with a Forward 12M P/E of 30.88.

MORE FROM FORBESMaxar Technologies (MAXR)

Dave & Buster’s Entmt Inc (PLAY)

Restaurant/video game arcade hybrid Dave & Buster’s is our next Top Short today. This pure play on reopening, and unique chain, has about 137 locations across the US and Canada. Our AI systems rated the company D in Technicals, D in Growth, F in Low Volatility Momentum, and D in Quality Value. The stock closed up 0.02% to $45.9 on volume of 1,181,902 vs its 10-day price average of $46.28 and its 22-day price average of $45.09, and is up 69.94% for the year. Revenue was $436.51M in the last fiscal year compared to $1265.3M three years ago, Operating Income was $(239.88)M in the last fiscal year compared to $157.38M three years ago, EPS was $(4.75) in the last fiscal year compared to $2.93 three years ago, and ROE was (128.2%) in the last year compared to 28.96% three years ago. The stock is also trading with a Forward 12M P/E of 276.51.

MORE FROM FORBESDave & Buster’S Entmt (PLAY)

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, C in Low Volatility Momentum, and D in Quality Value. The stock closed down 5.33% to $65.55 on volume of 1,854,558 vs its 10-day price average of $68.32 and its 22-day price average of $67.1, and is down 2.51% 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)

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