Hot or Not, Stock Market Edition: December 8, 2025

Happy Monday. Here's what's hot and what's not going into a new week:

• Hot: BRP (DOOO) catches a strong upgrade wave on stellar earnings; RTX Corp (RTX benefits from defense spending tailwinds
• Not: Kimco Realty (KIM) struggles despite retail REIT optimism; Oscar Health (OSCR) faces margin pressure and regulatory headwinds

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🔥 HOT: BRP (DOOO) – Up 22% over the past three months, this recreational vehicle powerhouse just got upgraded from Buy to Strong Buy in our Zen Ratings system. With a stellar Zen Rating of 99.7, DOOO ranks in the top 0.3% of all stocks we track. Recent earnings news certainly helped — the company beat both Q3 earnings and revenue estimates, sending a clear signal that demand for its Can-Am, Ski-Doo, and Sea-Doo brands remains robust despite broader economic uncertainty. What's driving the momentum? A combination of factors: BRP announced the renewal of its normal course issuer bid (essentially a share buyback program), which signals management's confidence in the company's value. Plus, the Can-Am brand is returning to the Dakar Rally with proven champions and its race-tested Maverick R platform — the kind of high-profile marketing that builds brand prestige. Looking at the Component Grades that shape the overall rating, DOOO earns an impressive A for Sentiment (98.9th percentile) and a B for Growth (94.9), Momentum (83.9), and Financials (85.9). The only softer spots are Value and Safety, both sitting at C — but with this kind of momentum and market leadership, those look like minor quibbles. With best-in-class ratings across nearly every metric, strong Q3 results, and management putting money where their mouth is via buybacks, DOOO has the fundamentals and the momentum to keep this rally going. For investors looking for exposure to the recreational vehicle sector with a company that's firing on all cylinders, this one's hard to ignore.

🥶 NOT: Despite some positive news flow, retail REIT Kimco Realty (KIM) just got downgraded from Hold to Sell in our Zen Ratings system, with a Zen Rating of just 12.3 landing it in the bottom 13th percentile. The stock is down 6% over the past three months and has failed to gain traction even as some of its peers have rallied. For a REIT, that's a red flag — especially when the sector was supposed to benefit from falling interest rates. Sure, there have been some bright spots: Kimco recently earned a credit rating upgrade to A3 from Moody's, and Argus Research reiterated a Buy rating. But the fundamentals tell a different story. The company's Zen Rating Component Grades reveal critical weaknesses: Growth earns a dismal F (just 3.3), while Momentum sits at a lackluster C (30.2). Even more concerning, KIM ranks 24th out of 28 stocks in the Retail REIT industry, which itself earns an F grade — suggesting the entire sector is struggling. The only saving grace is an A rating for Safety (96.1), but that's cold comfort when the growth prospects look this anemic. While falling interest rates could theoretically help REITs by lowering borrowing costs, the retail real estate sector faces structural headwinds from e-commerce that no rate cut can fix. For income investors tempted by the dividend yield, consider that yield only matters if the underlying business can sustain it — and right now, KIM's fundamentals suggest caution.

🔥 HOT: Defense and aerospace giant RTX Corp (RTX) just earned an upgrade from Buy to Strong Buy, with a Zen Rating of A and a ranking in the top 5% of stocks we track. While the stock price is essentially flat over the past week, the bigger picture tells a more compelling story: RTX is up 15% over the past six months and sitting near its 52-week high. The catalyst? A series of strategic moves that have caught Wall Street's attention: 1) RTX's Raytheon division announced a collaboration with Amazon Web Services to enhance satellite data processing and mission control services for space customers — a partnership that could open significant new revenue streams in the commercial space sector. 2) NATO allies are poised to inject $5 billion into defense spending, directly benefiting manufacturers like RTX. Looking at the Component Grades, RTX shines particularly bright in Momentum (A rating, 96th percentile) and Sentiment (B rating, 95th percentile), with solid above-average marks for Safety (B, 85th percentile). The weaker spots are Financials, AI, and Value (all C ratings), but for a massive defense contractor with steady government contracts, that's not unexpected. Verdict: Buy — this is a steady compounder with room to run as defense budgets expand.

 🥶 NOT: Health insurance upstart Oscar Health (OSCR) isn't looking so healthy at the moment. It just got downgraded from Hold to Sell, earning a Zen Rating of D. Despite some bullish analyst coverage touting ACA enrollment expansion, the stock has struggled with volatility and is down 7% over the past month. Rising medical costs and the potential expiration of enhanced ACA subsidies loom large — factors that could squeeze margins and slow membership growth. Right now, the company sits at 9th out of 10 stocks in the Healthcare Plan industry — dead last isn't quite the look you want in any sector, let alone one facing regulatory uncertainty. Looking at the Component Grades, weakness shows across the board: Straight Cs in every category, indicating few standout areas of strength. With regulatory uncertainty, margin pressure from medical costs, and bottom-tier industry positioning, the company needs to prove it can achieve sustained profitability and member growth before it deserves a place in portfolios. 

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