Best Stocks To Short Today As Earnings Lift The Retail Sector

best-stocks-to-short-today-as-earnings-lift-the-retail-sector

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The S&P 500 was continuing its march upwards as it hit new all-time highs this morning after earnings from Target

TGT
came across the tape. The company shares jumped over 10% as digital sales increased by 197% over the same time last year, helping the entire sector get a lift this morning. Lowe’s also had a blow-out quarter, reporting some 30% surge in revenues as shoppers continue to spend online. Coronavirus cases are also trending lower, however the return of students to school and college campuses are likely to show some spikes, as some colleges were forced to move to online learning recently. Washington remains in deadlock over a second coronavirus stimulus package which could be holding back the market from further gains. If the new market highs seem suspect to you given the pandemic is still raging, our deep learning algorithms paired with Artificial Intelligence (“AI”) technology have you covered with the Top Shorts today.

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American Eagle Outfitters Inc (AEO)

First on the Top Short list is American Eagle Outfitters Inc with AI-based factor scores of C in Technical, D in Growth, D in Momentum Volatility, D in Quality Value. The apparel maker has had a tough year, already down 20.49% for the year. The company is an apparel and accessory retailer with company stores throughout North America, China, Hong Kong, and the United Kingdom. The company leases all its stores, and most stores are in the United States. As for the financials, revenue grew by 4.69% over the last three fiscal years to $4308.21M in the last fiscal year, which compares to $3795.55M three years ago. Operating Income was $318.14M in the last fiscal year versus $331.07M three years ago. EPS was $1.12 in the last fiscal year, about flat when compared to $1.13 three years ago. ROE was 15.09% in the last year, lower than the 16.66% three years ago. Forward 12M Revenue is expected to grow by 6.23% and the stock is trading with a Forward 12M P/E of 33.17.

Simple Moving Average of American Eagle Outfitters Inc

Price of American Eagle Outfitters Inc compared to its Simple Moving Average


YCharts

Angi Homeservices Inc (ANGI)

Next on the Top short list is Angi Homeservices Inc with factor scores from our deep learning algorithms of D in Technical, F in Growth, F in Momentum Volatility, and C in Quality Value for the stock that is up 62.29% for the year. That growth appears to make it an opportunistic short at a time when valuations are elevated. The company connects quality home service professionals across different categories, from repairing and remodeling to cleaning and landscaping, with consumers. The financials are mixed, with revenue growing by 5.38% in the last fiscal year to $1326.2M, which is a growth of 89.79% over the last three fiscal years from $736.39M three years ago. Operating Income shrank by -146.62% over the last three fiscal years to $75.34M in the last fiscal, compared to $(147.87)M three years ago. EPS shrank by -117.97% over the last three fiscal years to $0.07 in the last fiscal, which compares to $(0.24) three years ago. ROE was 2.63% in the last year, versus (17.41%) three years ago. Forward 12M Revenue is expected to grow by 9.41%.

Simple Moving Average of Angi Homeservices Inc (ANGI)

Price of Angi Homeservices Inc compared to its Simple Moving Average


YCharts

Plains All American Pipeline LP (PAA)

Moving down the list, our next company is in the oil and gas midstream channel in Plains All American Pipeline LP. Our AI systems have assigned factor scores of C in Technical, D in Growth, F in Momentum Volatility, and D in Quality Value, even after the stock has lost 60.39% for the year. Our deep learning algorithms think the momentum will continue to the downside over the next few quarters. The company provides transportation, storage, processing, fractionation, and marketing services for crude oil, refined products, natural gas liquids, liquefied petroleum gas, and related products. Assets are geographically diverse, spanning the United States and Alberta, Canada, but heavily concentrated in major U.S. shale basins like the Permian, Stack, and Bakken. As for the financials, revenue grew by 8.82% over the last three fiscal years to $33669.0M in the last fiscal, compared to $26223.0M three years ago. Operating Income grew by 9.9% over the last three fiscal years to $2027.0M in the last fiscal year, versus $1303.0M three years ago. EPS was $2.65 in the last fiscal year, which compares to $0.95 three years ago. ROE was 17.26% in the last year, much better than the 8.65% three years ago. Forward 12M Revenue is expected to grow by 13.28% and the stock is trading with a forward 12M P/E of 6.01. The oil price rout in the last year is really hurting the company’s stock performance.

Simple Moving Average of Plains All American Pipeline LP (PAA)

Price of Plains All American Pipeline LP compared to its Simple Moving Average


YCharts

Royal Caribbean Cruises Ltd (RCL)

A repeat company makes its appearance on the Top Short list today in Royal Caribbean Cruises Ltd. Our AI-based factor scores have been identified as C in Technical, F in Growth, D in Momentum Volatility, and F in Quality Value. The company is the world’s second-largest cruise company, operating more than 60 ships across six global and partner brands in the cruise vacation industry. Brands the company operates include Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises, and Silversea. The stock, however, has plummeted this year in the face of a global pandemic hurting travel plans, losing 55.14% for the year already. Revenue was $10950.66M in the last fiscal year, which compares to $8777.84M three years ago. Operating Income was $2098.46M in the last fiscal year, versus $1744.06M three years ago. EPS was $8.95 in the last fiscal year, better than the $7.53 three years ago. ROE was 15.65% in the last year, which compares to 16.4% three years ago. Forward 12M Revenue is expected to grow by 16.51%, but the loss of tourism due to the pandemic may affect these numbers heavily going forward.

Simple Moving Average of Royal Caribbean Cruises Ltd (RCL)

Price of Royal Caribbean Cruises Ltd compared to its Simple Moving Average


YCharts

Trade Desk Inc (TTD)

Our final Top Short today is Trade Desk Inc

TTD
, with AI-based factor scores of F in Technical, C in Growth, F in Momentum Volatility, and C in Quality Value. The rally of 72.81% year-to-date in the stock is providing short sellers with an excellent short entry point. The company is engaged in providing a technology platform for ad buyers. Through its cloud-based platform ad buyers can create, manage, and optimize data-driven digital advertising campaigns across ad formats and channels, including display, video, audio, in-app, native and social, on a multitude of devices. As for the financials, revenue grew by 2.89% in the last fiscal year to $661.06M, and grew by 120.68% over the last three fiscal years from $308.22M three years ago. Operating Income grew by 0.31% over the last three fiscal years to $112.2M in the last fiscal, compared to $69.36M three years ago. EPS grew by 9.02% in the last fiscal year to $2.27, and grew by 115.19% over the last three fiscal years from $1.15 three years ago. ROE was 21.51% in the last year, versus 24.78% three years ago. Forward 12M Revenue is expected to grow by 16.97% and the stock is trading with a forward 12M P/E of 147.19.

Simple Moving Average of Trade Desk Inc (TTD)

Price of Trade Desk Inc compared to its Simple Moving Average


YCharts

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