Top Stocks To Short Today As Markets Rally After Yesterday’s Sell-Off

Markets traded sharply higher today, and rallied after yesterday’s downturn. After President Trump slightly backed off his comments that he would no longer negotiate a stimulus package until after the election, the indices rallied. The Dow rose 320 points, or 1.15%, while the S&P gained 1.18% and the Nasdaq jumped 1.21%. Concerns still remain about Congress breaking up Big Tech, however, Amazon and Apple jumped over 1% each, while Netflix gained 2.2%. Additionally, after President Trump tweeted further support for airline aid and JP Morgan upgraded airline stocks, United and Delta nearly recovered all of yesterday’s losses, gaining 3% and 2% respectively. Time will tell what happens with the stimulus and with the election coming up in less than a month, but investors will surely tune into tonight’s Vice-Presidential debate to get a better idea of where things are headed. The deep learning algorithms at Q.ai are here for you, and have crunched the data to give you a set of Top Shorts. Our Artificial Intelligence (“AI”) systems assessed each firm on parameters of Technical, Growth, Momentum Volatility, and Quality Value to find the best short plays.

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Datadog Inc (DDOG)

First on our list of Top Shorts is a high flying cloud computing stock- Datadog Inc. The stock has been a very trendy pick ever since it IPO’d, however, our AI systems believe the stock may be overheated and have too high of a valuation. Our AI systems rated Datadog F in Technical, D in Growth, F in Momentum Volatility, and in Quality Value. The stock closed down 2.78% to $103.92 on volume of 4,509,984 vs its 10-day price average of $97.33 and its 22-day price average of $90.57, and is up a staggering 183.16% for the year. Revenue grew by 32.52% in the last fiscal year and grew by 377.14% over the last three fiscal years, while Operating Income grew by -93.29% in the last fiscal year and grew by -54.26% over the last three fiscal years, and EPS grew by -110.48% in the last fiscal year and grew by -130.0% over the last three fiscal years. Revenue was $362.78M in the last fiscal year compared to $100.76M three years ago, Operating Income was $(20.14)M in the last fiscal year compared to $(2.96)M three years ago, EPS was $(0.12) in the last fiscal year compared to $(0.04) three years ago, and ROE was (3.95%) in the last year. Forward 12M Revenue is also expected to grow by 16.39% over the next 12 months.

MORE FROM FORBESDatadog (DDOG)

Expedia Group Inc (EXPE)

Back on our list of Top Shorts is Expedia Group. Expedia, which is known as a major travel website, and holding company, has struggled this year due to the pandemic. Outside of its own websites, Expedia owns and operates travel sites such as CarRentals.com, HomeAway, Hotels.com, Hotwire.com, Orbitz, Travelocity, trivago and Vrbo. Our AI systems have rated Expedia C in Technical, F in Growth, D in Momentum Volatility, and F in Quality Value. The stock closed down 0.31% to $91.87 on volume of 2,154,047 vs its 10-day price average of $92.35 and its 22-day price average of $94.63, and is down 17.22% for the year. Revenue was $12067.0M in the last fiscal year compared to $10060.0M three years ago, Operating Income was $961.0M in the last fiscal year compared to $626.0M three years ago, EPS was $3.77 in the last fiscal year compared to $2.42 three years ago, and ROE was 10.19% in the last year compared to 6.28% three years ago. Forward 12M Revenue is also expected to grow by 15.28% over the next 12 months.

MORE FROM FORBESExpedia Group (EXPE)

Norwegian Cruise Line Hldgs (NCLH)

Next on our list of Top Shorts is another travel stock- cruise liner Norwegian. It is anyone’s guess when the cruise lining industry will return back to normal, but for now, our AI systems are quite bearish on Norwegian. Our AI systems have given Norwegian ratings of C in Technical, F in Growth, D in Momentum Volatility, and F in Quality Value. The stock closed up 1.41% to $17.23 on volume of 31,714,310 vs its 10-day price average of $16.56 and its 22-day price average of $16.91, and is down 70.71% for the year. Revenue was $6462.38M in the last fiscal year compared to $5396.18M three years ago, Operating Income was $1184.21M in the last fiscal year compared to $1048.82M three years ago, EPS was $4.3 in the last fiscal year compared to $3.31 three years ago, and ROE was 14.91% in the last year compared to 14.77% three years ago.

MORE FROM FORBESNorwegian Cruise Line Holdings (NCLH)

Trade Desk Inc (TTD)

Our fourth Top Short is Trade Desk Inc. The software company which focuses on real time bidding, has been rated D in Technical, D in Growth, F in Momentum Volatility, and C in Quality Value by our AI systems. The stock closed up 1.98% to $585.25 on volume of 1,152,258 vs its 10-day price average of $515.92 and its 22-day price average of $473.05, and is up 115.6% for the year. Revenue grew by 2.89% in the last fiscal year and grew by 120.68% over the last three fiscal years, Operating Income grew by 0.31% over the last three fiscal years, and EPS grew by 9.02% in the last fiscal year and grew by 115.19% over the last three fiscal years. Revenue was $661.06M in the last fiscal year compared to $308.22M three years ago, Operating Income was $112.2M in the last fiscal year compared to $69.36M three years ago, EPS was $2.27 in the last fiscal year compared to $1.15 three years ago, and ROE was 21.51% in the last year compared to 24.78% three years ago. Forward 12M Revenue is also expected to grow by 17.11% over the next 12 months, and the stock is trading with a Forward 12M P/E of 183.64.

MORE FROM FORBESTrade Desk (TTD)

Cimarex Energy Co (XEC)

Cimarex Energy Co is our final Top Short of the day. The Denver based hydrocarbon explorer, and shale oil and gas drilling company, has been rated D in Technical, D in Growth, F in Momentum Volatility, and C in Quality Value. The stock closed down 6.13% to $23.58 on volume of 1,328,014 vs its 10-day price average of $24.07 and its 22-day price average of $24.78, and is down 54.84% for the year. Revenue grew by 3.74% over the last three fiscal years and was $2362.97M in the last fiscal year compared to $1918.25M three years ago. Operating Income was also $524.87M in the last fiscal year compared to $750.71M three years ago, EPS was $(1.33) in the last fiscal year compared to $5.2 three years ago, and ROE was (3.57%) in the last year compared to 21.44% three years ago. Forward 12M Revenue is also expected to grow by 5.63% over the next 12 months, and the stock is trading with a Forward 12M P/E of 11.12.

MORE FROM FORBESCimarex Energy (XEC)

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