Unveiling Bearish Positions: 3 Stocks Worthy of Consideration for Shorting This Week
Unveiling recent downgrades, these stocks exhibit a quantitative and technical degradation convergence.
We pinpoint names appearing bearish weekly, potentially offering compelling short-side investment prospects.
We spotlight three specific names by employing technical scrutiny of stock charts and when suitable, recent actions and evaluations from TheStreet’s Quant Ratings.
Abstaining from delving into fundamental analysis, this composition is a launching pad for investors intrigued by stocks on a downward trajectory to investigate these entities further.
Retreating Momentum at Advance Auto Parts
Advance Auto Parts Inc. (AAP) recently faced a downgrade to Hold, accompanied by a C+ rating from TheStreet’s Quant Ratings.
The auto parts retailer’s stocks underwent a brutal descent last Wednesday. Falling short of earnings expectations, a dividend reduction and feeble guidance triggered a sell-off that persisted throughout the day.
Despite potential perceptions of overreaction, further downside is likely, possibly dipping into the $60s or below. Investors need to support a name struggling to keep pace, inviting the bears to intensify their influence.
The financial outflow is notably weak, with the moving average convergence divergence (MACD) signalling a double sell indication. The outlook appears grim for Advance Auto Parts, targeting the $62 threshold. Reaching this level might take time, and intermittent upward fluctuations may occur, warranting a vigilant stop at $95.
Shorting MetLife May Prove Lucrative
MetLife Inc. (MET) recently experienced a downgrade to Hold, receiving a C+ rating from TheStreet’s Quant Ratings.
This substantial insurer has weathered a recent onslaught marked by declining peaks and troughs. The challenging high-interest rate environment has added complexity to investing premiums and proceeds for entities like MetLife.
Chart analysis corroborates the narrative, with the Chaikin money flow firmly entrenched in bearish terrain. The red cloud indicates a downward trend. A recent ascent with diminished turnover, succeeded by a downturn, clearly signals the dominance of sellers. Consequently, an opportunity for profit on the downside arises.
Setting our sights on the low $40s, a cautious stop at $54 is prudent.
H World Group’s Imperative Reassessment
H World Group Limited (HTHT) recently faced a downgrade to Sell, accompanied by a D+ rating from TheStreet’s Quant Ratings.
This hotel enterprise primarily conducting business in China observed a breach of the 200-day moving average, triggering a substantial distribution influx. Characterized by a succession of lower highs and lows, a definite downward trend is apparent.
The monetary flow narrative is overtly bearish, with the Relative Strength Index (RSI) in a top-pane descent at a steep slope, further affirming the bearish sentiment. Support is sparse until the mid-20s, though it may take time to reach that level. Aggressively targeting this territory at $26, a safeguarding stop at $42 remains in place.
Lang has no stake in the stocks above as of publication.