Bearish Bets: 3 Stocks You Should Consider Shorting This Week

Each week we discover names that look bearish and should present interesting investing opportunities on the short side.

Using technical evaluation of the charts of those stocks, and, when appropriate, recent actions and grades from TheStreet’s Quant Rankings, we zero in on three names.

While we won’t be weighing in with fundamental evaluation, we hope this piece will give investors excited about stocks on the best way down a superb start line to do further homework on the names.

Greenbrier Jumps the Track

Greenbrier Firms (GBX) recently was downgraded to Hold with a C rating by TheStreet’s Quant Rankings

The maker of railroad freight cars fell sharply last week on very heavy turnover, with the massive money in distribution mode. Money flow is showing a bearish reading now, while the Relative Strength Index (RSI) is bending lower at a steep angle. Moving average convergence divergence (MACD) continues to be on a bearish crossover signal and the cloud is just turning red.

Greenbrier’s stock has more downside potential, with the October lows in sight around $24. Goal that area, but put in a stop at $30 just in case.

Lear Cannot Get in Gear

Lear Corp. (LEA) recently was downgraded to Hold with a C+ rating by TheStreet’s Quant Rankings

The producer of automotive seating and electrical distribution systems has a big selection and a longtime low, however the stock appears to be having trouble on the 200-day moving average. That ought to come as no surprise. Money flow is bearish and the MACD, while turning higher, still stays on a sell signal. There may be loads of room here for Lear to go down toward the lower trend line; let’s call it $122.

Notice the bearish shooting star candle created on Wednesday. That tells us sellers are all around the stock. A swift move right down to the goal area could be very real. Nonetheless, put in a stop at $140.

Central Garden Is Wilting

Central Garden & Pet Co. (CENT) recently was downgraded to Hold with a C+ rating by TheStreet’s Quant Rankings

This producer of lawn and garden products and pet supplies got here onto the downgrade list last week after a miserable tumble to finish 2022 near its October lows. While we now have seen a little bit of a bounce, there is no such thing as a mistaking that this stock is in a severe downtrend.

With lower highs and lower lows Central Garden is prepared for the following move downward. The cloud is red while the cash flow is bearish, and the RSI shows a steep downtrend line as well. If short, goal the $30 area, put in a stop at $39 just in case.

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