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.
Dine Brands
Dine Brands Global Inc. (DIN) recently was downgraded to Sell with a D rating by TheStreet's Quant Ratings.
Hit hard due to the Covid-19 pandemic, this restaurant operator put in a nice recovery but now has hit some hard resistance. Notice the wall that is the top of the cloud, and the recent pull upward could not even bring the cloud to green.
There are some bullish signs here, but we think this name is topping out and thus would be a good short candidate. If short, put in a stop at $55 and look to ride it to the low $30s.
Gilead Sciences
Gilead Sciences Inc. (GILD) recently was downgraded to Hold with a C rating by TheStreet's Quant Ratings.
This biopharmaceutical giant was one of the early winners in the Covid-19 sweepstakes, but the stock has faded hard and was pushed lower after earnings hit last week. The cloud is bearish and the Relative Strength Index (RSI) is steep and sloping down.
There was protection at the 200-day moving average but that was removed on Wednesday. There is a moving average convergence divergence (MACD) sell signal, and look at the distribution in the money flow.
If short, look for a move to the low $60s but put in a stop at $72.
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.
