2 Stocks Heating Up for Summer

Happy Thursday. Here are the stock stories we're following today:

• Hot: Data storage specialist NetApp (NTAP) is quietly winning; defense heavyweight General Dynamics (GD) has a huge backlog
• Not: Quantum computing player Quantum Computing (QUBT) may not live up the the hype; battery tech maker EOS Energy Enterprises (EOSE) doesn’t have the fundamentals to back up the price moves

P.S. For more stocks making moves, check out our Zen Ratings Upgrades & Downgrades screener.

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🔥 HOT: Defense heavyweight General Dynamics (GD) is benefiting from a powerful combination of defense spending tailwinds and growing geopolitical uncertainty. Shares have been slowly but steadily gaining — a modest 6% in the past month, but a more impressive 30% in the past year. It’s no secret that defense contractors are benefiting amid global tensions. But importantly, GD enters this environment with one of the largest backlogs in the industry, giving the company strong revenue visibility for years to come.

The fundamentals reinforce the bullish case. GD was recently upgraded to a Zen Rating of B, which amounts to a Buy rating. Looking at its Component Grades, it earns an elite A for Safety, along with B grades for AI, Financials, and Value, reflecting a rare mix of stability, profitability, and reasonable valuation. Recent analyst upgrades have only added to the optimism. (See them here.) Bottom line: with defense budgets rising and demand for military equipment remaining strong, General Dynamics looks well-positioned to continue delivering for shareholders.

🥶 NOT: Quantum computing player Quantum Computing (QUBT) continues to attract attention from investors chasing the next big breakthrough in technology, but the fundamentals still lag far behind the hype. While the stock has gained roughly 37% over the past three months, the company generates only modest revenue and remains unprofitable, leaving investors to bet largely on future commercialization rather than current business results. As excitement around quantum computing cools, the market is becoming less willing to overlook that gap.

The Zen Ratings model sees substantial risk. QUBT recently fell to a D rating, or Sell recommendation, placing it among the bottom 20% of stocks tracked by WallStreetZen's 115-factor model. The stock earns F grades for AI, Financials, Safety, and Value, signaling weakness across nearly every major category that drives long-term stock performance. Bottom line: Chase it if you must, but know it’s pure speculation. (For more actionable quantum computing plays with superior fundamentals, check this out.)

🔥 HOT: Data storage specialist NetApp (NTAP) is emerging as a stealth winner of the AI infrastructure boom, with shares surging over 50% over the past three months as investors look beyond chipmakers and toward the companies powering the data behind AI. The company has further strengthened its position through partnerships with major technology providers like Cisco, helping it capitalize on the next wave of enterprise AI spending.

The fundamentals are just as impressive as the story. NTAP earns a top-tier Zen Rating of A, a Strong Buy recommendation, placing it in the top 5% of all stocks tracked by WallStreetZen's 115-factor model. Looking at the Component Grades, the company scores an A for Financials along with B grades for Value and Momentum, reflecting strong profitability, healthy business performance, and continued investor confidence. Bottom line: While many investors focus exclusively on AI chip stocks, NetApp offers a compelling way to profit from the massive infrastructure buildout happening behind the scenes.

🥶 NOT: Shares of battery tech maker EOS Energy Enterprises (EOSE) have risen nearly 10% in the past week after the company announced the start of commercial production at a new manufacturing facility. However, there’s a hitch. While demand for grid-scale battery storage continues to grow, Eos is still in the early stages of scaling production and has yet to demonstrate consistent profitability, making execution the key risk for shareholders.

The Zen Ratings model reflects those concerns. EOSE currently carries a D rating, which amounts to a Sell recommendation. Looking at the Component Grades, the company earns Ds for Financials, Safety, Value, and AI, suggesting investors are taking on significant risk while waiting for the business to mature. Listen, the story is exciting and the energy storage market offers tremendous opportunity, but Eos still has a lot to prove before it can turn that opportunity into sustainable shareholder returns.

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