Hot or Not, Stock Market Edition: 01/02/2026

Full steam ahead! We checked out the latest upgrades and downgrades in our Zen Ratings system to see what’s uptrending and what’s downtrending right now: 

• Hot: B2Gold (BTG) glitters; Greenland Technologies (GTEC) charges ahead
• Not: Alaska Air (ALK) hits turbulence; Texas Roadhouse (TXRH) sizzles for the wrong reasons

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

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🔥 HOT: Gold miner B2Gold (BTG) is shining bright at the perfect time. The stock has climbed over 30% in the past year, and there are compelling reasons to keep watching in 2026: A) BTG was recently upgraded from a B (Buy) to an Strong Buy (A) rating in our Zen Ratings system, with standout grades including an A for Growth — signaling exceptional expansion potential. B) The company's new Goose Mine in Canada commenced production in Q3 2025, adding a significant growth engine that's expected to ramp up through 2026. While initial costs are high during the ramp-up phase, the mine represents a major production catalyst. C) With gold prices hovering near record highs and Q3 production beating expectations at 254,369 ounces, B2Gold is perfectly positioned to capitalize on the precious metals bull market. The bottom line? B2Gold's production growth, new mine additions, and favorable gold price environment make it a compelling opportunity.

🥶 NOT: Alaska Air Group (ALK) is experiencing serious headwinds that justify its recent Strong Sell (F) rating downgrade in our Zen Ratings system. The airline now ranks a dismal #46 out of 54 in its industry (which has an Industry Rating of D, by the way). What went wrong? A few things: A) In early December 2025, ALK slashed Q4 earnings guidance from $0.40 per share down to just $0.10 — a whopping 75% cut — citing multiple operational challenges including a major IT outage (25 cents impact), government shutdown-related flight cancellations (15 cents), and elevated fuel costs (15 cents). B) The government shutdown triggered FAA-mandated flight reductions, resulting in approximately 600 cancellations and affecting 40,000 passengers. Revenue trends that had been strongly positive suddenly turned negative year-over-year. C) ALK's Component Grades paint a bleak picture: F for Growth, D for Sentiment, and C grades across the board—indicating Wall Street has lost confidence in near-term prospects. D) Analysts have revised earnings estimates downward for Q4 2025, full-year 2025, full-year 2026, AND Q1 2026—a clear sign of deteriorating fundamentals. Considering the above, it may be prudent to avoid ALK for now. 

🔥 HOT: Micro-cap Greenland Technologies (GTEC) may be flying under the radar, but this electric industrial vehicle maker deserves attention. Despite modest gains over the past year, GTEC recently earned a Strong Buy (A) rating upgrade in our Zen Ratings system and ranks an impressive #1 out of 11 in the Specialty Industrial Machinery industry. Here's what caught our eye: A) The company achieved a remarkable financial turnaround in fiscal 2024, posting net income of $15.15 million versus a $25 million loss the prior year B) GTEC has dramatically improved operational efficiency, slashing operating expenses by 28% while maintaining healthy gross margins above 26%. C) The company earns strong Component Grades including an A for Growth and B for Value, and at a market cap under $25 million, it trades at extremely compelling valuation multiples. D) GTEC's pivot toward electric drivetrain systems and heavy industrial equipment positions it in a growing niche as logistics operations electrify globally. With proven profitability, improving margins, and significant insider ownership (roughly 30% by the founder/CEO), Greenland Technologies represents an intriguing deep-value play in the green industrial space.

🥶 NOT: Restaurant group Texas Roadhouse (TXRH) may serve up delicious steaks, but its stock is getting grilled by rising costs. Despite impressive historical performance, TXRH recently dropped from a Buy (B) to a Sell (D) rating in our Zen Ratings system and now ranks 54th out of 67 in the (F-rated) Restaurants industry. The steakhouse chain faces mounting headwinds: A) Beef prices have surged double-digits, and analysts expect this critical input cost inflation to persist through at least Q2 2026. B) While the company maintains solid same-store sales and traffic growth, the stock has fallen approximately 11% since early August, underperforming the broader market as investors digest the cost pressures. C) Looking at the earnings data, trailing twelve-month earnings growth has been slowing, with the company posting 12.31% growth compared to an 89.06% increase over the last five years. D) Component Grades reveal weakness: TXRH earns a D for Sentiment and mediocre C grades for Momentum, Safety, and Financials — suggesting the market is pricing in a difficult operating environment ahead.Our take? Until beef cost inflation moderates and margins stabilize, there are more appetizing opportunities elsewhere.

What to Do Next?

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