Markets are rebounding to the upside this morning after a sharp selloff Tuesday, of course, on the back of very little economic news and ahead of corporate earnings season kicking off next week. From the economic side, it looks like housing demand is spiking with rock-bottom rates as mortgage applications rose 5% for the week and were a remarkable 33% higher than a year ago. That may be helping markets, as Wednesday’s move comes amid a coronavirus surge happening in the US, as a reported record daily spike of more than 60,000 cases happened. If you were to take the financial markets as a barometer, it is almost as if no global pandemic is happening. The reality on the ground is that the US is coming up on 3 million confirmed cases, according to John Hopkins University, with many more likely going uncounted. Being concerned about the elevated levels of the market is likely to be on many investors’ minds ahead of a slew of corporate earnings coming, not to mention a 2020 election season that is only going to get more volatile. If you’re looking for places to short the market, our deep learning algorithms paired with our Artificial Intelligence (“AI”) technology has you covered with the Top Shorts today.
Airgain Inc (AIRG)
First on the Top Short list is Airgain Inc, with factor scores of D in Technical, F in Growth, C in Momentum Volatility, and D in Quality Value from our AI systems. The company is engaged in providing antenna technologies used to enable performance wireless networking across devices and markets, including connected home, enterprise, automotive, and internet of things, among others. The stock has had a volatile year, currently showing a small loss of 2.06%, but our AI expects the downward trend to win out over time. As for the financials, revenue was $55.7M in the last fiscal year, a growth over the $49.5M from three years ago. Operating Income was $0.4M in the last fiscal year compared to $1M three years ago. EPS came in at $0.09 in the last fiscal year, worse than the $0.11 three years ago. ROE also was trending in the wrong direction at 2% in the last year compared to 2.5% three years ago. Forward 12M revenue is expected to grow by 4.47%.
Brighthouse Financial Inc (BHF)
Brighthouse Financial Inc
Soleno Therapeutics Inc (SLNO)
Soleno Therapeutics Inc is another Top Short today with our AI systems assigning factor scores of F in Technical, C in Momentum Volatility, and C in Quality Value. The company is a healthcare provider developing and commercializing diagnostics, devices, and therapeutics addressing unmet medical needs. However, our deep learning algorithms thinks the stock is headed lower after losing 24.29% year-to-date already. EPS grew by 12.22% in the last fiscal year but was negative $(0.9), a growth of 53.8% over the last three fiscal years from $(1.71). Operating Income was negative $(23.2)M in the last fiscal year compared to $(9.68)M three years ago. ROE was (135.7%) in the last year worse than the (78%) three years ago.
TherapeuticsMD Inc (TXMD)
Next on our Top Short list is TherapeuticsMD Inc with AI-based factor scores of D in Technical, C in Momentum Volatility, and F in Quality Value. The company is in the business of major drug manufacturing, with a focus on creating and commercializing products targeted exclusively for women. Unfortunately, the stock is already down 37.3% for the year and our deep learning algorithms thinks that it will head lower. Revenue did grow by 16.94% in the last fiscal year to $49.6M, growing by 245.24% over the last three fiscal years from $16.8M. Operating Income, however, was negative $(151.2)M in the last fiscal year worse than the $(77.6)M reading from three years ago. EPS was $(0.72) in the last fiscal year compared $(0.37) three years ago. ROE was an abysmal (330.1%) in the last year, compared to (59.8%) three years ago. Forward 12M Revenue is expected to grow by 24.16%.
Veeco Instruments Inc (VECO)
Our final Top Short today is Veeco Instruments Inc