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Best Stocks To Short As COVID Vaccine News Offsets Big-Tech Losses

Markets were decently higher this morning, with the Dow and S&P 500 up around 1% and the Nasdaq NDAQ up about 0.5% after positive vaccine reports from Moderna. The company noted that their coronavirus vaccine produced a “robust” immune response, with all patients developing antibodies in its early stage human trial. It seems like the “coronavirus vaccine” is the new “trade deal” helping markets go higher every other day, meanwhile the economic conditions continue to deteriorate with the virus spreading fast, especially in the U.S. On the earnings side, Goldman Sachs GS reported a massive surge in trading revenues which helped them beat the Street estimates handily. And finally, helping out the Dow this morning, Apple AAPL contributed to gains after a European court annulled a 2016 decision from the European Commission to order the tech giant to pay $15 billion in taxes. However, with the S&P 500 looking to hold on to positive year-to-date gains despite a recession, you may be wondering how long this rally can last. Our deep learning algorithms and Artificial Intelligence (“AI”) technology has you covered with the Top Shorts today.

The Cato Corp (CATO)

First on the Top Short list today is The Cato Corp, a specialty retailer of fashion apparel and accessories primarily in the southeastern United States. Our deep learning algorithms have identified factor scores of D in Technical, F in Growth, C in Momentum Volatility, and F in Quality Value for the stock that has already lost 59.28% for the year. The next movement in the stock looks more likely to head lower. As for the financials, operating income grew by 26.6% in the last fiscal year to $29.7M, from $55.8M three years ago. EPS grew by 18.7% in the last fiscal year to $1.23, compared to $1.72 three years ago. Revenue was $829.7M in the last fiscal year versus $956.6M three years ago. ROE was 11.3% in the last year compared to 2.4% three years ago.

Premier Financial Bancorp (PFBI)

Next on the Top Short list is Premier Financial Bancorp, a multi-bank holding company that focuses on community banking services to individuals and small-to-medium sized businesses. The stock has lost 36.79% for the year, and it looks likely to head lower with factor scores of F in Technical, C in Momentum Volatility, and C in Quality Value from our AI systems. A look at the financials shows that Revenue grew by 16.51% over the last three fiscal years to $1.64 in the last fiscal, compared to $1.1 three years ago. EPS also grew by 43.64% over the last three fiscal years. Revenue was $75M in the last fiscal year versus $63.6M three years ago. ROE was 10.6% in the last year, which compares to 8.3% three years ago.

Surface Oncology Inc (SURF)

Surface Oncology Inc is the next Top Short today with factor scores of D in Technical, D in Momentum Volatility, and D in Quality Value from our deep learning algorithms. The company is a clinical-stage immuno-oncology company that is developing new therapies that modify the spaces in and around tumors, looking to sustain anti-tumor immune responses. The stock has gained 177.01% for the year, which is providing a great short opportunity. Revenue grew by 157.28% in the last fiscal year to $15.36M, and grew by 208.1% over the last three fiscal years from $12.83M. Operating Income grew by 50% in the last fiscal year but was negative $(57.34)M, and grew by 37.64% over the last three fiscal years from $(45.99)M. EPS grew by 49.24% in the last fiscal year but was also negative at $(1.97), and grew by 94.55% over the last three fiscal years from $(18.35). ROE was (68.7%) in the last year versus (3,278.7%) three years ago.

Vicor Corp (VICR)

Next on the Top Short list is Vicor Corp VICR , a manufacturer and marketer of modular power components and complete power systems. Our AI systems have identified factor scores of C in Technical, D in Growth, D in Momentum Volatility, and F in Quality Value for the stock that has gained 55.2% for the year, providing short sellers with an excellent entry point. Revenue grew by 14.44% over the last three fiscal years to $263M in the last fiscal, compared to $227.8M three years ago. Operating Income grew by 614.29% over the last three fiscal years from $14.1M in the last fiscal, compared to $(1.4)M three years ago. EPS was $0.34 in the last fiscal year versus $0 three years ago. ROE was 7.2% in the last year compared to 0.2% three years ago. Forward 12M Revenue is expected to grow by 4.99% and the stock currently trades with an expensive forward 12M P/E of 228.58.

Westwater Resources Inc (WWR)

Our final Top Short today is Westwater Resources Inc WWR , an explorer and developer of mineral resources that are materials essential to clean energy production. However, after a loss of only 1.02% for the year, our deep learning algorithms have identified the company as a sell. Factor scores of F in Technical, F in Momentum Volatility, and F in Quality Value cannot get much worse from our AI systems. Operating Income grew by 59.34% over the last three fiscal years but came in at a negative $(9.54)M in the last fiscal, which was better than the $(23.82)M from three years ago. EPS grew by 23.56% in the last fiscal year but was also negative $(5.39), which was a growth of 89.43% over the last three fiscal years. Of course, EPS was a terrible $(38.99) three years ago. ROE was (55.8%) in the last year, worse than the reading of (45.8%) three years ago.

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