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Arvinas Inc Ranked Among Today’s Top Shorts As U.S. Deals With A Debt Ceiling Crisis

We saw a nice two-day rally thanks to Jay Powell and the Fed. Investors were anxious for weeks on potential tapering and tightening of monetary policy. Yet, the Fed eased fears when they indicated that the current economic stimulus would stay in place for just a little bit longer. Following the Dow’s
DOW
500 pt rally on Thursday, Friday told a different story. The indices came back down to earth with the Dow Jones falling 167 points, the S&P 500 dipping 0.5%, and the Nasdaq
NDAQ
dropping 0.7%. Evergrande in China is still plaguing market sentiment. After some worries were eased that it could start paying some of its $300B debts on Thursday, reports came out that some creditors may still be waiting to get paid. The U.S. is still dealing with a debt ceiling crisis and a potential government shutdown. This could also cause it to default on its sovereign debt for the first time in history. But did you really think that China only had one negative market catalyst on Friday? China’s central bank overnight deemed crypto “illegal” and caused tech stocks, namely crypto stocks, to plunge. Bitcoin and ether also were off 5% and 9%, respectively. 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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Arvinas Inc (ARVN)

Arvinas Inc is today’s first 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 0.53% to $94.19 on volume of 352,578 vs its 10-day price average of $94.63 and its 22-day price average of $90.5, and is up 12.34% 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 160.43. 

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 down 0.56% to $319.25 on volume of 808,083 vs its 10-day price average of $327.21 and its 22-day price average of $331.91, and is up 35.12% 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 12.85% over the next 12 months.

MORE FROM FORBESCarvana (CVNA)

Plug Power Inc (PLUG)

Our third 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 3.16% to $27.77 on volume of 21,569,220 vs its 10-day price average of $25.56 and its 22-day price average of $25.92, and is down 13.68% 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 19.11% over the next 12 months. 

MORE FROM FORBESPlug Power (PLUG)

Redfin Corp (RDFN)

Our fourth Top Short for the day is Redfin Corp. 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 brokerage’s commission back (called the Redfin Refund). Our AI systems rated Redfin C in Technicals, F in Growth, D in Low Volatility Momentum, and F in Quality Value. The stock closed down 0.23% to $52.13 on volume of 997,243 vs its 10-day price average of $49.85 and its 22-day price average of $50.15, and is down 22.47% for the year. Revenue grew by 37.8% in the last fiscal year and grew by 150.77% over the last three fiscal years, Operating Income grew by -109.87% over the last three fiscal years, and EPS grew by -4.37% in the last fiscal year and grew by -54.5% over the last three fiscal years. 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. Forward 12M Revenue is also expected to grow by 17.12% over the next 12 months. 

MORE FROM FORBESRedfin (RDFN)

Sabre Corp (SABR)

Our final Top Short today is Sabre Corp. 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 D in Technicals, D in Growth, C in Low Volatility Momentum, and F in Quality Value. The stock closed up 3.84% to $11.91 on volume of 5,775,497 vs its 10-day price average of $11.31 and its 22-day price average of $11.15, and is up 6.24% 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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