Top 3 Stocks to Short This Week
These stocks have recently faced downgrades, indicating potential shorting opportunities.
Every week, we pinpoint stocks showing bearish signals, offering intriguing shorting prospects.
By analyzing their technical charts and considering recent ratings from TheStreet’s Quant Ratings, we highlight three stocks.
While we refrain from delving into fundamental analysis, this piece aims to guide investors intrigued by downward-trending stocks to conduct further research.
Exact Sciences: Not Exactly Bullish
Exact Sciences Corp. (EXAS) recently saw a downgrade to Sell with a D+ rating from TheStreet’s Quant Ratings.
Stocks exhibiting a downtrend pattern, marked by declining highs and lows, typically signal shorting opportunities, albeit with timing considerations. Exact Sciences fits this bill, having breached October’s protective lows amidst substantial trading volume.
This downward trajectory suggests trouble ahead, with all indicators signaling bearish sentiment for the cancer screening and diagnostic test provider. Despite a significant decline, there’s potential for further downside, targeting around $44 with a stop at $62.
Titan Machinery: A Need for Change
Titan Machinery Inc. (TITN) was recently downgraded to Hold with a C+ rating by TheStreet’s Quant Ratings.
In a market where most stocks ascend, a clear downtrend in Titan Machinery spells trouble. The consistent pattern of lower highs and lows indicates vulnerability, especially with weak money flows and a fresh MACD sell signal. With the RSI below 50, indicating sustained weakness, further decline seems likely. A shorting opportunity presents itself with a target around $20 and a stop at $29.
Standard Motor: A Bumpy Ride Ahead
Standard Motor Products Inc. (SMP) received a recent downgrade to Hold with a C+ rating from TheStreet’s Quant Ratings.
The automotive parts manufacturer finds itself in a pronounced downtrend, exacerbated by disappointing earnings results. Breaking below the 100-day moving average and negative money flow indicators paint a bleak picture. Targeting October’s lows around $30 seems prudent, with momentum strongly indicating further downward movement. A stop at $35 provides some cushion against unexpected reversals.
At the time of writing, Lang has no positions in the mentioned stocks.