5 Stocks to Watch: Week of 7/28/2025

Hard to believe it’s the last Sunday in July, isn’t it? We’re keeping it chill with 5 excellent picks with near and long-term potential, including:

• Why analysts forecast over 20% upside for Vontier ( VNT) in the coming year 
• Why smart money believes Ducommun (DCO) could double (or more) in the coming year
• Penguin Solutions (PENG) is back on the list with a new Strong Buy rating 
• Analysts forecast significant upside for Leidos Holdings (LDOS) 
• EnerSys (ENS) is our Stock of the Week — and an energizing portfolio pick

P.S. Missed last week’s 5 stocks to watch? Get 'em here.

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1- Vontier (NYSE: VNT) 

Vontier is in the business of keeping transportation networks up and running. The company handles everything from hardware to fleet management software and payment tech, and services a wide range of customers, spanning everything from your good old gas station to top-tier logistics providers. Right now, VNT stock is trading at a pretty steep discount — and two of Wall Street’s top analysts are confident that there’s plenty of room left for capital appreciation.

Zen Rating: B (Buy) — see full analysis >  

Recent Price: $39.61 — get current quote > 

Max 1-year forecast: $48.00 

Why we’re watching:

• At present, Vontier stock has 4 analyst ratings — split between 2 Strong Buys, 1 Buy, and 1 Hold. See the ratings
• The average price target for VNT shares is currently $45.75 — a figure that implies a 21.61% upside. 
• Andy Kaplowitz of Citigroup (a top 1% rated analyst) recently maintained a Strong Buy rating on the stock, and increased his price forecast from $37 to $45.
• Kaplowitz's price target hike was delivered in a Q2 2025 preview of names in their Industrial Conglomerates portfolio.
• The analyst predicted robust results from the group and marginal raises to FY 2025 earnings guides.
• Interestingly enough, the Street-high price target of $48 comes from another top-rated analyst — Barclays researcher Julian Mitchell (also a top 1% rated analyst).
• The Scientific & Technical Instrument industry has an Industry Rating of B and consists of 25 stocks — and within it, VNT is currently rated #1.
• Vontier shares rank in the top 6% of the equities that we track — this gives them a Zen Rating of B, which has historically corresponded to average annual returns of 19.88%. It should be noted, however, that VNT is within striking distance of being rated in the top 5%, which would give it a Zen Rating of A.
• There’s plenty to like with our second pick — it ranks quite highly in terms of Financials (top 5%), Value (top 4%), and Safety (top 1%). Beyond a healthy balance sheet, VNT is trading at a price-to-earnings (P/E) ratio of 15.29x and a price-to-earnings growth (PEG) ratio of 0.77x, while also benefiting from stable revenue flows, stock price, and predictable earnings. (See all 7 Zen Component Grades here >)

2- Leidos Holdings (NYSE: LDOS) 

Leidos Holdings is a critical player in defense, cybersecurity, and government IT services, and the company’s balance sheet is buoyed by a $46.3 billion backlog, which seems poised to increase in tandem with defense spending. Analyst coverage of LDOS is quite bullish — what’s more, the stock is currently trading at a very attractive P/E of just 15.99x.

Zen Rating: A (Strong Buy) — see full analysis >  

Recent Price: $164.30 — get current quote > 

Max 1-year forecast: $200.00 

Why we’re watching:

• Analyst coverage of Leidos Holdings tends strongly toward the bullish side — the stock currently has 4 Strong Buy ratings and 2 Hold ratings. See the ratings
• Citigroup’s Jason Gursky (a top 3% rated analyst) recently doubled down on a Strong Buy rating on LDOS stock, and upped his price target from $186 to $190. 
• LDOS belongs to the 56-stock strong Information Technology Service industry, which has an Industry Rating of B. It is currently the 2nd-highest-rated stock within its industry.
• Leidos Holding stock ranks in the 96th percentile of the equities that we track, giving it a Zen Rating of A.
• When it comes to Financials and Artificial Intelligence, Leidos Holdings shares rank in the 84th percentile overall.
• In terms of its Safety and Sentiment Component Grade ratings, LDOS stock ranks in the top 8% and top 7% of stocks, respectively.
• Value is the stock’s strongest suit — in this category, Leidos Holdings ranks in the 95th percentile of equities. (See all 7 Zen Component Grades here >)

3- Penguin Solutions (NASDAQ: PENG) 

An end-to-end provider of IT infrastructure, Penguin Solutions dabbles in everything from solid state drives and DRAM modules to LED lights. Dabbles might be underselling it, though — the $1 billion business has been in business since 1988. Recent developments surrounding the company’s AI efforts have led one of Wall Street’s finest to issue a bold new forecast for PENG.

Zen Rating: B (Buy) — see full analysis >  

Recent Price: $25.06  — get current quote > 

Max 1-year forecast: $35.00 

Why we’re watching:

• PENG currently has a total of 6 analyst ratings, split between 3 Strong Buys, 2 Buys, and 1 Hold. Notably, there are no Sell or Strong Sell ratings. See the ratings
• Loop Capital’s Ananda Baruah (a top 9% rated analyst) recently doubled down on a Strong Buy rating on Penguin Solutions and increased his price target from $30 to a Street-high $35.
• Baruah contextualized their price target hike on Penguin Solutions with the fact that the company is seeing early signs of commercial AI adoption, booking five new customers this quarter after three last quarter, and that Penguin has also been brought into a large opportunity in the Middle East, although it is in the very early stages.
• The 66-stock strong Semiconductor industry has an Industry Rating of B — and PENG is the 3rd highest-rated stock in the industry. 
• Penguin Solutions stock currently ranks in the 94th percentile of the more than 4,600 equities that we track, giving it a Zen Rating of B. Readers should note, however, that PENG is within striking distance of a Zen Rating of A, and would only have to surpass 26 stocks to qualify for a rating upgrade.
• Thanks to positive analyst coverage and a notable degree of insider buying, the stock ranks in the top 10% when it comes to Sentiment.
• However, PENG’s greatest strength comes from its Value Component Grade rating — in this regard, the stock ranks in the 95th percentile of equities. (See all 7 Zen Component Grades here >)

4- EnerSys (NYSE: ENS)

This is our Stock of the Week. EnerSys has managed to notch an impressive streak of earnings beats — and seeing as how it is in the business of energy back-ups, the company stands to benefit from the inevitable retooling of the U.S. grid. ENS hasn’t attracted much attention yet — but once you see how it ranks, it will quickly become apparent why our Zen Investor portfolio manager selected it.

Zen Rating: A (Strong Buy) — see full analysis >  

Recent Price: $94.00 — get current quote > 

Max 1-year forecast: $120.00 

Why we’re watching:

• ENS is our Stock of the Week. Our Editor-in-Chief, Steve Reitmeister, recently added it to his exclusive Zen Investor portfolio, and explained why in a Monday article. We’ll touch on a few of his points down below.
• EnerSys is coming off its 13th straight earnings beat — and while earnings outlook for 2025 has been trimmed, the outlook for 2026 remains intact.
• At present, only one analyst, Roth MKM’s Chip Moore (a top 17% rated analyst), tracks ENS shares — and he issues a Strong Buy rating with a $120 price target, which implies a 27.12% upside.
• However, Steve is confident that the stock could finish up next year closer to $150 — which would imply an upside of about 58.89%.
• ENS is currently the top-rated stock in the entire Electrical Equipment & Part industry, which has an Industry Rating of B.
• EnerSys ranks in the 99th percentile of stocks — more precisely, it is currently the 41st highest-rated stock that we track, giving it a Zen Rating of A.
• ENS ranks in the top 19% and top 18% when it comes to Growth and Sentiment, respectively.
• In terms of Financials and Artificial Intelligence, EnerSys shares rank in the top 11% and top 6% of equities.
• However, Value is the stock’s strongest suit — ENS is currently trading at a P/E of just 10.32x, so it comes as little surprise that it ranks in the top 1% in terms of this Component Grade rating. (See all 7 Zen Component Grades here >)

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5- Ducommun (NYSE: DCO) 

Founded way back in 1849, Ducommun makes a wide variety of crucial aerospace components. As defense modernization programs ramp up, the company’s blend of legacy expertise and advanced manufacturing capabilities makes it a compelling player in the aerospace supply chain.

Zen Rating: A (Strong Buy) — see full analysis >  

Recent Price: $89.85 — get current quote > 

Max 1-year forecast: $190.00 

Why we’re watching:

• DCO shares enjoy unanimous support from the equity researchers that cover them, as they currently have 3 Strong Buy ratings and 1 Buy rating. See the ratings
• To boot, the average 12-month price forecast for Ducommun stock, currently pegged at $118.50, implies a hefty 36.99% upside.
• Citigroup’s Jason Gursky (a top 2% rated analyst) recently maintained a Strong Buy rating on Ducommun and hiked his price target from $186 to a Street-high $190.
• In an Aerospace and Defense sector quarterly preview note, Gursky noted that stock price momentum continues for names in the group.
• The Defense industry contains 69 equities and has an Industry Rating of B. DCO is currently the 2nd highest-rated stock within the industry.
• At present, Ducommun ranks in the top 2% of the equities we track, giving the stock a Zen Rating of A.
• DCO ranks in the 89th percentile according to its Safety Component Grade rating, as well as the 91st percentile when it comes to Sentiment.
• However, Momentum is the stock’s strongest suit — in terms of this Component Grade rating, the stock ranks in the top 7% of equities. (See all 7 Zen Component Grades here >)

What to Do Next?

• 9 Special Stock Lists You Need Now >
• See All “A” Rated Stocks with +32.52% Average Annual Return >
• 2 New Stocks to Buy from Steve Reitmeister >

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