Best Stocks To Hedge Portfolio With As Coronavirus Cases Worsen

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
BHF
is the next Top Short on the list today, and the stock has had a miserable year, already down 34.01%. Our deep learning algorithms think this stock is headed lower with factor scores of D in Technical, F in Growth, F in Momentum Volatility, and C in Quality Value. The company is a US-based provider of annuity products and life insurance through independent distribution channels, with the majority of its revenue coming from the annuity segment of the business. Revenue for the company grew by 127.53% to $6520M in the last fiscal year, and grew by 116.92% over the last three fiscal years, registering $6839M in revenue three years ago. Operating Income grew by 807.37% but was negative $(895)M in the last fiscal year, a growth of 1461.51% over the last three fiscal years. Operating income came in at $(465)M three years ago, so the trend is getting worse overall. EPS was $(6.76) and grew by 765.24% in the last fiscal year, growing by 1523.1% over the last three fiscal years. EPS came in at $(3.16) three years ago. ROE was (4.8%) in the last year worse than the (2.6%) three years ago. The stock currently trades with a forward 12M P/E of 3.39.

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
VECO
, with factor scores of F in Technical, D in Growth, F in Momentum Volatility, and C in Quality Value from our AI systems. The stock is down 8.91% for the year and looks likely to head lower, making it a strong entry point for a short seller. The company is a US-based firm that is designing, developing, and manufacturing thin-film process equipment, mainly used to produce electronic devices. Revenue grew by only 1.24% in the last fiscal year to $419.3M, compared to $475.7M three years ago. Operating Income grew by 60.62% in the last fiscal year but was still negative $(29.2)M, a growth of 63.49% over the last three fiscal years. Of course, Operating income was negative $(31.5)M three years ago. EPS grew to negative $(1.66) in the last fiscal year, a growth of 30.71%, compared to $(1.16) three years ago. ROE was (19.4%) in the last year compared to (7.2%) three years ago. Forward 12M revenue is expected to grow by 2.92% and the stock currently trades with a forward 12M P/E of 20.62.