5 Stocks to Watch: Week of 8/25/2025

Happy Weekend! Here's what we'll be watching next week:

• Past Stock of the Week pick US Foods Holding Corp (USFD) is back on the list
• Why analysts are confident Eli Lilly (LLY) still has room to grow 
• Pagaya Technologies (PGY) is an AI play you may not have considered
• Utility-scale solar projects are in demand — and it’s benefiting Array Technologies (ARRY) 
• Why Udemy (UDMY) is an under-$10 winner worth watching

Let's get to it. (And if it's of interest — See last week’s picks here.)

A note from our sponsors...

1- Udemy (NASDAQ: UDMY)

This pick is also our latest Stock of the Week. Udemy is known far and wide as the premier online platform for taking courses and mastering new skills. With the advent of AI, the job market is poised for major changes — and UDMY is well-positioned to benefit, having recently announced a deal with online jobs site Indeed. To further sweeten the pot, the stock is incredibly well-rounded.

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

Recent Price: $6.94 — get current quote > 

Max 1-year forecast: $12.00 

Why we’re watching:

• UDMY is our Stock of the Week. Our Editor-in-Chief, Steve Reitmeister, explained why he added it to his exclusive Zen Investor portfolio in a Monday article. We’ll go through some of the most important points below.
• This stock has been working off the excesses from its overhyped IPO back in late 2021 when it sprung to over $30 per share. Since then, UDMY has produced 14 impressive beat and raise earnings reports and yet still shares have slunk down to under $7 today. 
• Udemy is also one of the top 7 stocks under $10 — which has earned it a spot in our Stocks under $10 strategy.
• Next year’s earnings estimates stand at 55 cents — however, in the past three quarters, the business has delivered an average EPS beat of 35%. 
• Steve believes that the UDMY could surge to levels as high as $14 in 2026.
• Wall Street analysts agree with our Editor-in-Chief — the average price target for UDMY shares currently stands at $9.71, and implies a 44.77% upside. Udemy currently has 2 Strong Buy ratings, 2 Buy ratings, and 3 Hold ratings.
• UDMY ranks in the top 2% of the more than 4,600 stocks that we track, giving it a Zen Rating of A.
• Udemy is also currently the top-rated stock in the Education industry, which has an Industry Rating of A.
• UDMY is an incredibly well-rounded stock — it ranks in the top 19% in terms of Value, the top 13% when it comes to Sentiment, and the top 12% when looking at Financials.
• That isn’t the end of it, however, as Udemy shares also rank in the 91st percentile according to Growth and the 92nd percentile according to Artificial Intelligence. (See all 7 Zen Component Grades here >)

2- Pagaya Technologies (NASDAQ: PGY) 

Pagaya Technologies uses artificial intelligence to expand access to consumer credit. The company partners with banks, fintechs, and auto lenders to provide capital and analytics that help underwrite loans for underserved borrowers. While the business missed EPS estimates in its last quarterly report, long-term growth prospects remain fantastic — and the stock price has dropped by 10.6% in the past week, so we have a great opportunity to buy the dip on our hands here.

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

Recent Price: $29.77 — get current quote > 

Max 1-year forecast: $54.00 

Why we’re watching:

• At present, PGY shares are tracked by 7 Wall Street analysts — their coverage is split between 4 Strong Buy ratings and 3 Buy ratings. See the ratings
• In addition, the average 12-month price forecast for Pagaya Technologies stock, currently pegged at $39.43, implies a hefty 30.17% upside.
• B. Riley Securities researcher Hal Goetsch (a top 2% rated analyst) reiterated a Strong Buy rating on the stock after Pagaya Technologies reported its Q2 2025 earnings, and increased his price target from $46 to a Street-high $54.
• Goetsch attributed their hiked EPS estimates for this year and FY 2026 to the quarter's beat and management's guidance raise.
• PGY is the 7th highest-rated stock in the Software Infrastructure industry, which has an Industry Rating of A.
• Pagaya Technologies shares rank in the top 5% of the equities that we track, giving them a Zen Rating of A. Stocks with this distinction have provided an average annual return of 32.52% since the turn of the millennium — interestingly enough, that figure lines up fairly decently with Wall Street’s expectations.
• A neural network trained on two decades of fundamental and technical data has pinpointed PGY as a likely outperformer — the stock ranks in the top 4% of equities in terms of its Artificial Intelligence rating.
• However, Growth is the star of the show here — Pagaya Technologies ranks in the top 1% of stocks in this regard. (See all 7 Zen Component Grades here >)

3- Eli Lilly (NYSE: LLY) 

Eli Lilly is a bona fide pharma powerhouse. As one of the primary beneficiaries of the weight loss drug boom, the company has seen a significant increase in stock price — and although recent news surrounding an oral product fell short of expectations, Wall Street remains confident that there’s plenty of room for LLY to rally further.

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

Recent Price: $714..28 — get current quote > 

Max 1-year forecast: $1,135.00 

Why we’re watching:

• Analyst coverage of LLY is both broad and almost unanimously positive — the stock currently has 8 Strong Buy ratings and 1 Sell rating. See the ratings
• In addition, the average price target for Eli Lilly shares, currently at $935.33, implies a hefty 33.38% upside.
• Carter Gould of Cantor Fitzgerald (a top 15% rated analyst) reiterated a Strong Buy rating on the stock after the company reported its Q2 2025 earnings on 2025/08/07, but cut his price forecast from $975 to $825.
• Gould said the launch-related "show-me-story" the company is facing was caused by orforglipron Phase 3 obesity data that fell short of expectations and semaglutide benchmarks. 
• A "resolution" might not come until late 2026, the analyst said.
• LLY is currently the 4th highest-rated stock in the General Drug Manufacturer industry, which has an Industry Rating of A.
• Eli Lilly shares rank in the top 6% of the equities that we track, giving them a Zen Rating of B, which has historically corresponded to an average annualized return of 19.88%.
• LLY offers a very compelling mix of both Value and Growth— in terms of the former, it ranks in the top 18% of stocks, and in terms of the latter, it ranks in the top 13%.
• To boot, the pharma giant’s strong balance sheet has allowed it to rank in the 84th percentile when it comes to Financials.
• With all of that said, Sentiment is Eli Lilly’s strongest Component Grade rating — as it ranks in the top 10% in this category. (See all 7 Zen Component Grades here >)

A note from our sponsors...

4- Array Technologies (NASDAQ: ARRY) 

This stock was featured as a “diamond in the rough” stock pick in Wednesday’s newsletter. Array Technologies is a leading provider of solar tracking systems that help maximize the efficiency of utility-scale solar projects. Wall Street analysts are quite bullish on ARRY, particularly after the company delivered a double beat in its latest quarterly report. The business enjoys a strong balance sheet, and the Treasury Department’s recent decision to largely preserve tax credits for renewable projects presents a bullish medium-term catalyst.

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

Recent Price: $8.89 — get current quote > 

Max 1-year forecast: $13.00

Why we’re watching:

• At present, 13 Wall Street analysts issue ratings for Array Technologies stock. Their coverage is split between 7 Strong Buy ratings, 1 Buy rating, and 5 Hold ratings. See the ratings
• Moreover, the average 12-month price forecast for ARRY shares, currently pegged at $9.19, implies a hefty 20.63% upside.
• UBS researcher Jon Windham maintained a Strong Buy rating on Array Technologies stock after the company reported its Q2 2025 earnings, and increased his price target from $8.50 to $9.
• Looking ahead, Windham noted that management's FY 2025 guidance suggests better gross margins in 2H than in 1H.
• Our proprietary quant rating system uses 115 factors to evaluate stocks. It keeps track of roughly 4,600 equities — and ARRY ranks in the top 3%, giving it a Zen Rating of A, which has historically corresponded to an average annualized return of 32.52%.
• Each Zen Rating is a composite score of seven Component Grade ratings. For instance, Array Technologies ranks in the top 21% when it comes to Sentiment.
• In terms of Financnials, ARRY ranks in the 82nd percentile of the equities that we track.
• However, Growth is Array Technologies’ strongest suit — in this category, the stock ranks in the top 1%.  (See all 7 Zen Component Grades here >)

5- US Foods Holding Corp (NYSE: USFD) 

This past stock of the week pick distributes food — whether fresh, frozen, or dry, to food service companies all across the United States. While it is faced with a tough macro environment, it stands out as quite a safe pick in a tumultuous market.

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

Recent Price: $77.57 — get current quote >

Max 1-year forecast: $96.00 

Why we’re watching:

• US Foods Holding Corp shares have 7 Strong Buy ratings and 1 Hold rating. See the ratings
• In addition, the average price target of $89 implies a healthy 16.57% upside.
• Wells Fargo equity researcher Edward Kelly (a top 8% rated analyst) maintained a Strong Buy rating on USFD following the company’s Q2 2025 earnings, and increased his price target from $80 to $87.
• Kelly called the results a "solid beat and raise quarter," but noted that the likelihood of a PFGC deal took a hit in management's earnings call commentary, and case volume performance missed a higher bar.
•  For their part, however, the analyst argued that the US Foods Holding story remains compelling under the noise. 
• In addition to a Zen Rating of B (Buy), US Foods Holding Corp is the 2nd highest-rated stock in the Food Distribution industry, which has an Industry Rating of A.
• At writing, USFD ranks in the top 10% of the equities we track, giving it a Zen Rating of B.
• US Foods Holding Corp ranks in the 74th percentile of stocks in terms of Growth, and the 75th percentile when it comes to Value.
• According to its Artificial Intelligence Component Grade rating, USFD ranks in the top 20% of equities. It also ranks in the top 16% according to Financials.
• With that being said, Safety is the star of the show — in this category, US Foods Holding Corp ranks in the top 4%. (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 >

Want to get in touch? Email us at news@wallstreetzen.com.