Atmus Filtration Tech (ATMU): The Trend is THIS Stocks Friend

In my 2026 Stock Market Outlook, I covered a lot of ground to help point out the kinds of stocks that would outperform in the year ahead. 

2 Clear Themes Emerged

1. Small and Mid Caps stocks will outperform after 5 years of large cap dominance. Simple matter of more attractive valuations for smaller stocks. 
2. Interest rates will keep heading lower thus wise to seek more companies that will benefit from lower rates. 

One clear winner from both these trends is Atmus Filtration Technologies (ATMU) and thus happy to make it my current Stock of the Week selection. 

Here we find an appealing mid-cap play in the Pollution & Treatment group inside the industrial sector. It is easy to see the earnings momentum taking place with these shares since they went public in mid 2023. Non-stop earnings beats with shares rallying 150% in the process.

There is nothing fancy taking place here. Just a strong operator in their respective industry enjoying increased sales volume + pricing strength = higher margin...higher profits...higher stock price.

There is no reason to believe that party will end any time soon. Thus, I am happy to snap up now counting on more beat and raises to push shares even higher. 

The odds of that coming true increase in a lower rate environment. That’s because industrial companies need to borrow more money to help with their capital intensive businesses. Thus, lower rates > lowers borrowing costs > increases profit > increases fair value of shares. 

We are also leaning heavily on the fundamental merit unveiled in the Zen Ratings deep dive on 115 factors for the company. Don’t shy away because of the B rating. There is still a lot of outperformance in those shares especially when it’s still in the top 8% of all stocks analyzed by our model. 

Shares were A rated when it first joined my portfolio late last year. The reason that shares are no longer A rated is because of the impressive share price gains after 10 straight earnings beats ever since they broke off from Cummins Engine (CMI) back in 2023. This has the Value measures heading a slight notch lower.

Yet it is precisely the earnings momentum on display in those 10 earnings beats that points to higher earnings and higher share price ahead. 

Also these shares are in the top 4% for Financial strength according to the Zen Ratings analysis. This is a leading indicator of well run companies more likely to beat earnings and enjoy a soaring share price in the future. 

There is never a guarantee of an earnings beat on the way. Yet given their history of 10 straight beats, plus that top 4% showing for Financial strength, then I very much like the odds of investors buying ATMU shares now before they have their next report in February.  

What To Do Next?

Atmus Filtration Technologies (ATMU) is just one of 20 stellar stocks found in my Zen Investor portfolio.

Each of these 20 stocks was selected based on my stringent process that helps pinpoint those with 100%+ upside potential in the next 12 to 24 months.

Plus I am adding 2 new buy recommendations on Wednesday February 4th. 

To learn more about my unique investment process…and to see my current top 20 stocks…and get the 2 new buy recommendations this coming Wednesday…then just click the link below: 

Discover Zen Investor & Top 20 Stocks & 2 New Picks Coming Soon > 

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

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