Using recent actions and grades from TheStreet's Quant Ratings and layering on technical analysis of the charts of those stocks, Trifecta Stocks identifies five names each week that look bearish.
While we will not be weighing in with fundamental analysis we hope this piece will give investors interested in stocks on the way down a good starting point to do further homework on the names.
Cracker Barrel
Cracker Barrel Old Country Store Inc. (CBRL) is rated a Hold with a C rating by TheStreet's Quant Ratings.
The restaurant chain has seen better days. Cracker Barrel is struggling like the rest of 'em, and no doubt if the pandemic continues there will be tougher days ahead.
The chart shows some challenges, with a moving average convergence divergence (MACD) sell signal and weak money flow. The stock just fell to the bottom of a downtrend channel and soon could fill a May gap and punch down even lower. Fibonacci support comes in around the $90 area, and volume trends are up.
A good short to $90 or so, but with a stop at $110.
Wynn Resorts
Wynn Resorts Inc. (WYNN) is rated a Sell with a D+ rating by TheStreet's Quant Ratings.
Casino resorts have taken some punishment along with cruise operators, restaurants and retail.
Money flow for Wynn just turned down and the MACD is bearish; the stock is threatening to break the May lows. If that happens the April gap at $57 is the next target to fill, so if short look for a move there but put in a stop at $83 (its 50-day moving average).
This commentary is an excerpt from "5 Bearish Bets" a weekly feature sent to subscribers of Trifecta Stocks. Click here to learn more about this portfolio, trading ideas and market commentary product.
Want to find out the other stocks we think look good short this week and how to play them? Click here for a trial subscription to Trifecta Stocks and get "Bearish Bets" each week!
-- Bob Lang and Chris Versace are co-portfolio managers of Trifecta Stocks.
