Top Stocks To Short Today As Investors Anticipate Markets To Drop

Investors did not cheer the passage of the latest stimulus package. On the other hand, there was a bit of a “too little too late” reaction, combined with spooked investors dumping COVID-recovery stocks due to a new strain found in the U.K. that may be more infectious and contagious. After dropping by as much as 600 points in premarket trading, the Dow Jones fell 320 points, or 1.1%. The S&P 500 also shed 1.4% and Nasdaq
NDAQ
fell 1.0%. Travel stocks were predictably the largest laggards of the day thanks to more severe lockdowns and travel restrictions. Norwegian and Royal Caribbean
RCL
each fell more than 6%, Delta Air Lines
DAL
lost 5%, and hospitality companies such as Wynn Resorts
WYNN
fell as well. However, other stocks hit highs today. Nike
NKE
hit an all time high, while financial stocks Goldman Sachs
GS
and JP Morgan each hit a year-and-a-half high and 9-month high, respectively. The market is also experiencing massive volume today as Tesla
TSLA
formally debuts on the S&P 500. Tesla has been added to the index in one fell swoop, and is causing the largest rebalancing of the S&P 500 in history. During its debut, Tesla fell more than 4%. Meanwhile, the E.U. officially approved Pfizer’s
PFE
vaccine, and the roll-out of Moderna’s vaccine in the U.S. officially began. 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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Inspire Medical Systems (INSP)

Inspire Medical Systems is our first Top Short today. The healthcare company is a medical innovation company dedicated to treating sleep apnea. Our AI systems rated the company C in Technicals, D in Growth, D in Low Volatility Momentum, and D in Quality Value. The stock closed down 2.11% to $185.71 on volume of 534,943 vs its 10-day price average of $193.23 and its 22-day price average of $189.01, and is up 149.31% for the year. Revenue grew by 17.34% in the last fiscal year and grew by 237.03% over the last three fiscal years, while EPS grew by -84.41% over the last three fiscal years. Revenue was $82.05M in the last fiscal year compared to $28.57M three years ago, Operating Income was $(34.9)M in the last fiscal year compared to $(16.0)M three years ago, EPS was $(1.4) in the last fiscal year compared to $(14.88) three years ago, and ROE was (21.88%) in the last year. Forward 12M Revenue is also expected to grow by 45.36% over the next 12 months.

MORE FROM FORBESInspire Medical Systems (INSP)

Liveperson Inc (LPSN)

Software company Liveperson Inc
LPSN
is our next Top Short today. Liveperson develops conversational commerce and AI software, and is best known as the developer of the Conversational Cloud, a software platform that allows consumers to message directly with brands. Our AI systems rated the company F in Technicals, C in Growth, D in Low Volatility Momentum, and F in Quality Value. The stock closed up 6.19% to $63.51 on volume of 1,843,800 vs its 10-day price average of $57.79 and its 22-day price average of $56.5, and is up 69.99% for the year. Revenue grew by 17.82% in the last fiscal year and grew by 56.97% over the last three fiscal years, and Operating Income grew by -9.39% in the last fiscal year. Revenue was $291.61M in the last fiscal year compared to $218.88M three years ago, Operating Income was $(80.09)M in the last fiscal year compared to $(7.53)M three years ago, EPS was $(1.53) in the last fiscal year compared to $(0.32) three years ago, and ROE was (60.18%) in the last year compared to (13.06%) three years ago. Forward 12M Revenue is also expected to grow by 16.22% over the next 12 months.  

MORE FROM FORBESLiveperson (LPSN)

Virgin Galactic Holdings Inc (SPCE)

Virgin Galactic
SPCE
is our next Top Short. Virgin Galactic is a commercial spaceflight company within Richard Branson’s Virgin Group, and is aiming to provide commercial flights to space for both tourists and space science missions. Our AI systems rated the company F in Technicals, C in Growth, D in Low Volatility Momentum, and F in Quality Value. The stock closed down 6.51% to $23.84 on volume of 30,244,133 vs its 10-day price average of $28.97 and its 22-day price average of $27.41, and is up 102.21% for the year. Revenue was $3.78M in the last fiscal year compared to $1.75M three years ago, Operating Income was $(213.26)M in the last fiscal year compared to $(138.71)M three years ago, EPS was $(1.09) in the last fiscal year compared to $(0.71) three years ago, and ROE was (82.86%) in the last year. Forward 12M Revenue is also expected to grow by 1055.16% over the next 12 months.

MORE FROM FORBESVirgin Galactic Holdings (SPCE)

Tenable Holdings Inc (TENB)

Cybersecurity company Tenable Holdings is our next Top Short. Tenable provides SaaS and builds on its technological expertise to provide analytics that translate vulnerability data into business insight. Our AI systems rated the company D in Technicals, D in Growth, C in Low Volatility Momentum, and D in Quality Value. The stock closed up 21.14% to $51.85 on volume of 6,412,812 vs its 10-day price average of $40.4 and its 22-day price average of $37.89, and is up 111.98% for the year. Revenue grew by 18.22% in the last fiscal year and grew by 123.3% over the last three fiscal years, Operating Income grew by -30.71% in the last fiscal year, and EPS grew by -23.02% in the last fiscal year and grew by -57.8% over the last three fiscal years. Revenue was $354.59M in the last fiscal year compared to $187.73M three years ago, Operating Income was $(90.8)M in the last fiscal year compared to $(40.76)M three years ago, EPS was $(1.03) in the last fiscal year compared to $(1.88) three years ago, and ROE was (89.74%) in the last year. Forward 12M Revenue is expected to grow by 13.07% over the next 12 months, and the stock is trading with a Forward 12M P/E of 215.06.

MORE FROM FORBESTenable Holdings (TENB)

Alkaline Water Company Inc (WTER)

Alkaline Water Company is our final Top Short. The company is a premier bottler of alkaline drinking water, and has developed a proprietary electrolysis beverage process that enhances its product with trace minerals and electrolytes. The company was rated C in Technicals, D in Low Volatility Momentum, and F in Quality Value by our AI systems. The stock closed down 3.74% to $1.03 on volume of 1,130,369 vs its 10-day price average of $1.07 and its 22-day price average of $1.1, and is down 24.82% for the year. Revenue grew by 10.64% in the last fiscal year and grew by 129.76% over the last three fiscal years, Operating Income grew by -4.94% in the last fiscal year, and EPS grew by -23.02% in the last fiscal year and grew by -18.09% over the last three fiscal years. Revenue was $41.14M in the last fiscal year compared to $19.81M three years ago, Operating Income was $(14.38)M in the last fiscal year compared to $(5.93)M three years ago, EPS was $(0.34) in the last fiscal year compared to $(0.32) three years ago, and ROE was (228.47%) in the last year compared to (1034.17%) three years ago. Forward 12M Revenue is also expected to grow by 14.03% over the next 12 months.

MORE FROM FORBESAlkaline Water Company (WTER)

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