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American Airlines Group Inc Ranked Among Today’s Top Shorts Amid Fears Surrounding Evergrande’s Debt Crisis In China

Is September’s sell-off over? The market was set to gain for a second straight day on Thursday and claw back much of this month’s losses. Fears around Evergrande’s debt crisis in China were eased somewhat. The Federal Reserve kept the current monetary stimulus in place for just a little longer, which also helped investor sentiment. Meanwhile, there could be some progress on the domestic front regarding the U.S. debt ceiling. Led by energy stocks and recovery plays such as Freeport-McMoRan
FCX
, Las Vegas Sands
LVS
, and Caterpillar
CAT
, the Dow Jones gained 257 points or 0.7%, the S&P 500 rose 0.5%, and the Nasdaq
NDAQ
gained 0.4%. However, weekly jobless claims totaled 351,000 and came in worse than expected. 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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American Airlines Group Inc (AAL)

American Airlines is our first Top Short today. American Airlines is the largest airline in the world in terms of the number of passengers carried, fleet size, and scheduled passenger-kilometers. While the upside is evident for airline travel, due to pent-up demand, nobody truly knows when travel demand will return to pre-pandemic levels. Especially with the Delta variant, other emerging variants, and waning vaccine efficacy threatening to derail everything. Our AI systems rated American Airlines D in Technicals, D in Growth, F in Low Volatility Momentum, and F in Quality Value. The stock closed up 3.85% to $20.52 on volume of 39,344,290 vs its 10-day price average of $19.73 and its 22-day price average of $19.7, and is up 35.62% for the year. Revenue grew by 7.78% in the last fiscal year, Operating Income grew by -10.81% in the last fiscal year, and EPS grew by -46.38% in the last fiscal year. Revenue was $17337.0M in the last fiscal year compared to $44541.0M three years ago, Operating Income was $(11058.0)M in the last fiscal year compared to $3757.0M three years ago, and EPS was $(18.36) in the last fiscal year compared to $3.03 three years ago. Forward 12M Revenue is also expected to grow by 32.28% over the next 12 months.

MORE FROM FORBESAmerican Airlines Group (AAL)

Arvinas Inc (ARVN)

Arvinas Inc is today’s second Top Short. Arvinas is a clinical-stage biopharmaceutical company dedicated to improving the lives of patients suffering from debilitating and life-threatening diseases. Our AI systems rated the company D in Technicals, F in Growth, F in Low Volatility Momentum, and F in Quality Value. The stock closed up 0.73% to $93.69 on volume of 357,374 vs its 10-day price average of $94.72 and its 22-day price average of $90.18, and is up 11.75% for the year. Revenue grew by 45.9% over the last three fiscal years, while EPS grew by -85.58% over the last three fiscal years. Revenue was $21.8M in the last fiscal year compared to $14.32M three years ago, Operating Income was $(124.86)M in the last fiscal year compared to $(43.8)M three years ago, EPS was $(3.02) in the last fiscal year compared to $(25.45) three years ago, and ROE was (27.47%) in the last year compared to (60.57%) three years ago. Forward 12M Revenue is expected to grow by 29.11% over the next 12 months, and the stock is trading with a Forward 12M P/E of 159.58.

MORE FROM FORBESArvinas (ARVN)

Carvana Co (CVNA)

Back on our list of Top Shorts is Carvana Co. 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 up 0.89% to $321.06 on volume of 985,068 vs its 10-day price average of $328.16 and its 22-day price average of $333.65, and is up 35.89% for the year. Revenue grew by 60.23% in the last fiscal year and grew by 357.77% over the last three fiscal years, Operating Income grew by -75.21% in the last fiscal year and grew by -62.67% over the last three fiscal years, and EPS grew by -57.59% in the last fiscal year and grew by -45.04% over the last three fiscal years. 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. Forward 12M Revenue is also expected to grow by 13.05% over the next 12 months.

MORE FROM FORBESCarvana (CVNA)

Plug Power Inc (PLUG)

Our fourth Top Short is also no stranger to this list-Plug Power Inc. Plug Power is a company at the forefront of automotive innovation with its development of hydrogen fuel cell systems. The goal of this company is to develop mechanisms to eventually replace conventional batteries in equipment and vehicles powered by electricity. Our AI systems rated Plug Power F in Technicals, F in Growth, D in Low Volatility Momentum, and F in Quality Value. The stock closed up 3.22% to $26.92 on volume of 15,050,220 vs its 10-day price average of $25.31 and its 22-day price average of $25.81, and is down 16.32% for the year. Revenue grew by -94.06% in the last fiscal year, while EPS grew by -10.05% in the last fiscal year. Revenue was $-93.24M in the last fiscal year compared to $174.22M three years ago, Operating Income was $(576.61)M in the last fiscal year compared to $(76.44)M three years ago, EPS was $(1.68) in the last fiscal year compared to $(0.39) three years ago, and ROE was (74.61%) in the last year compared to (157.5%) three years ago. Forward 12M Revenue is also expected to grow by 19.12% over the next 12 months.

MORE FROM FORBESPlug Power (PLUG)

Sabre Corp (SABR)

Our final Top Short today is Sabre Corp. Sabre, which was initially founded by American Airlines in 1960, is the largest global distribution systems provider for air bookings in North America. Our AI systems rated Sabre D in Technicals, D in Growth, C in Low Volatility Momentum, and F in Quality Value. The stock closed up 1.96% to $11.47 on volume of 7,933,168 vs its 10-day price average of $11.23 and its 22-day price average of $11.08, and is up 2.32% for the year. Revenue grew by 0.38% in the last fiscal year, while Operating Income grew by -7.25% in the last fiscal year, and EPS grew by -17.01% in the last fiscal 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. Forward 12M Revenue is also expected to grow by 33.33% over the next 12 months. 

MORE FROM FORBESSabre (SABR)

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