3 Heavily Shorted Stocks To Stay Away From This Fall

The stock market has been under pressure due to macroeconomic uncertainty and looming recession fears. The consumer price index (CPI) rose 8.3% year-over-year in August. The rise in…

inflation was mainly led by increased prices of food, shelter, and medical care services, partially offset by a fall in gasoline prices.

The elevated level of inflation will likely spring the Fed back into action by aggressively hiking the benchmark interest rates. The Federal Reserve is expected to keep increasing interest rates aggressively until it achieves its long-term inflation target of 2%. This is expected to keep the stock market under pressure.

The overall risk-off environment has weighed on investors’ sentiment. However, many investors have been shorting stocks due to the uncertain macroeconomic environment to benefit from their price declines.

Heavily shorted stocks Lucid Group, Inc. (LCID), Riot Blockchain, Inc. (RIOT), and Blink Charging Co. (BLNK) don’t have enough chances to rebound anytime soon. So, investors looking to bottom fish should stay away from these stocks.

Lucid Group, Inc. (LCID)

LCID is a technology and automotive company that develops electric vehicle (EV) technologies. It designs, engineers, and builds electric vehicles, EV powertrains, and battery systems.

LCID’s loss from operations widened 124.6% year-over-year to $559.20 million for the second quarter ended June 30, 2022. Its total costs and expenses increased 163.6% year-over-year to $656.53 million.

The company’s net loss narrowed 15.8% year-over-year to $220.42 million. Its loss per share narrowed 95.4% year-over-year to $0.33. Also, its adjusted EBITDA loss widened 89.9% year-over-year to $414.08 million.


Analysts expect its loss per share for the quarter ended September 30, 2022, to widen 52.4% year-over-year to $0.32. It failed to surpass the consensus EPS estimate in three of the trailing four quarters. The stock has declined 56.3% year-to-date to close the last trading session at $16.63.

LCID weak prospects are reflected in its POWR Ratings. It has an overall F rating, equating to a Strong Sell in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

It has an F grade for Value, Stability, and Quality. It is ranked #53 out of 65 stocks in the Auto & Vehicle Manufacturers industry. Click here to see the other ratings of LCID for Growth, Momentum, and Sentiment.

Riot Blockchain, Inc. (RIOT)

RIOT is involved in cryptocurrency mining and the overall blockchain system through various investments. The company has deployed approximately 8,000 application-specific integrated circuit miners at its cryptocurrency mining facility in Oklahoma. In addition, its subsidiary Tess Inc. seeks to develop a blockchain-based escrow service for wholesale telecom carriers.

For the fiscal second quarter ended June 30, 2022, RIOT’s net loss came in at $366.33 million, compared to a net income of $19.33 million. Its adjusted EBITDA loss came in at $65.17 million, compared to…

Continue reading at STOCKNEWS.com


You May Also Like

About the Author: admin