Best Stocks To Short Today As Technology Shares Fall After Disappointing Earnings

Stocks are limping into the weekend on Friday’s session, with the Dow and S&P 500 off slightly, and the tech-heavy Nasdaq off more than 1%. A source of the pullback is US-China tensions, as China ordered the closure of a US consulate in Chengdu, in response to Washington’s shuttering of the Chinese consulate in Houston earlier this week. The Chinese market plunged, with the Shanghai Composite down almost 4% in overnight trading. Big Tech was also suffering this morning, pressuring the Nasdaq, as Intel

INTC
shares plunged more than 16% as of writing after disappointing guidance for Q3. Tesla

TSLA
also dropped significantly, over 5%, as investors started to take profits from their 2020 winners. Is this the beginning of a pullback, or simply another “Buy the Dip” opportunity? If you are in the former camp, our deep learning algorithms using Artificial Intelligence (“AI”) technology have identified several Top Shorts today.

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Cracker Barrel Old Country Store (CBRL)

First on the Top Short list today is Cracker Barrel Old Country Store

CBRL
, the operator of hundreds of full-service restaurants throughout the US. The stock is already down 30.88% for the year, but our AI algorithms thinks the massive chain is set to head lower in the months ahead. Eating in restaurants is bound to be way down during a pandemic where the country is losing handle on the outbreak. Factor scores have been identified as F in Technical, F in Growth, D in Momentum Volatility, and D in Quality Value for the company. Revenue was $3071.95M in the last fiscal year compared to $2926.29M three years ago. Operating Income was $282.84M in the last fiscal year versus $313.16M three years ago. EPS was $9.27 in the last fiscal year, better than the $8.37 three years ago. ROE was 37.66% in the last year, in line with 37.7% three years ago. Forward 12M revenue is expected to grow by only 1.44% and the stock is trading with a forward 12M P/E of 72.19.

Devon Energy Corp (DVN)

Devon Energy Corp is next on the Top Short list with AI-based factor scores of C in Technical, F in Growth, D in Momentum Volatility, and C in Quality Value. The company is based in Oklahoma City, and is one of the largest independent exploration and production companies in North America with oil and gas assets spread throughout onshore North America. The stock is already down 57.81% for the year, but momentum is clearly to the downside at these levels. Revenue grew by 16.95% in the last fiscal year to $5969.0M and grew by 10.11% over the last three fiscal years from $6340.0M three years ago. Operating Income grew by 658.19% in the last fiscal year to $177.0M, a growth of 845.07% over the last three fiscal years from $142.0M three years ago. EPS was $(0.89) in the last fiscal year compared to $1.7 three years ago. ROE was (1.05%) in the last year, worse than the 0.25% three years ago.

Fluor Corp (FLR)

Next on the Top Short list is Fluor Corp

FLR
with factor scores from our deep learning algorithms of C in Technical, C in Momentum Volatility, and D in Quality Value. The company is one of the largest global providers of engineering, procurement, construction, fabrication, operations, and maintenance services. The stock is down 35.54% for the year already, poised to head lower according to our AI systems. Revenue was $19166.6M in the last fiscal year compared to $19036.53M three years ago. Operating Income was $531.97M in the last fiscal year, worse than the $662.24M three years ago. EPS was $1.59 in the last fiscal year, down significantly from $2.0 three years ago. ROE was 8.86% in the last year versus 10.3% three years ago. The stock is currently trading with a forward 12M P/E of 10.34. A recent rally off the lows is providing an interesting short-entry point for the stock.

Taubman Centers Inc (TCO)

Taubman Centers Inc

TCO
is another Top Short today with factor scores of F in Technical, D in Growth, C in Momentum Volatility, and D in Quality Value from our deep learning algorithms. The real estate investment trust is engaged in the ownership, leasing, acquisition, disposition, development, expansion, and management of shopping centers. The company owns or operates a collection of over 20 urban and suburban shopping centers in U.S. states, Puerto Rico, South Korea, and China. Unfortunately, this space is likely to be hit the hardest from the coronavirus. The stock, however, is not reflecting that as it is currently 28.67% higher for the year, providing an excellent place to get short. Revenue grew by 4.95% over the last three fiscal years to $661.05M versus $629.16M three years ago. Operating Income grew by 5.24% over the last three fiscal years to $180.17M in the last fiscal from $165.48M three years ago. EPS grew by 2.28% in the last fiscal year to $3.32 and grew by 274.49% over the last three fiscal years from $0.91 three years ago. Forward 12M revenue is expected to grow by 2.97%.

Valero Energy Corp (VLO)

And finally, our last Top Short today is Valero Energy Corp

VLO
, one of the largest independent refiners in the US. It operates 14 refineries with a total throughput capacity of 3.1 million barrels per day in the US, UK, and Canada. Our AI technology has identified factor scores of C in Technical, F in Growth, D in Momentum Volatility, and D in Quality Value, and while the stock has already lost 39.38% year-to-date, it looks to be headed lower. Revenue grew by 13.71% over the last three fiscal years to $102729.0M in the last fiscal year versus $88407.0M three years ago. Operating Income was $3885.0M in the last fiscal year compared to $3599.0M three years ago. EPS was $5.85 in the last fiscal year, much worse than the $9.16 three years ago. ROE was 12.3% in the last year lower than the 19.0% three years ago.

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