Hot or Not, Stock Market Edition: 02/03/2026

Happy Tuesday. Here are the stock stories we're following today:

• Hot: SanDisk (SNDK) soars on AI demand; Merck & Co (MRK) climbs to new highs
• Not: Riot Platforms (RIOT) slides below moving averages; Summit Therapeutics (SMMT) tumbles ahead of FDA decision

P.S. Mark your calendar for February 4… The same Zen Investor process behind 100%+ winners like EnerSys (ENS)  is unveiling 2 new high-upside stock picks — gain access to them by joining today.

🔥 HOT: SanDisk (SNDK) is up 194% in the past 3 months. That's not a typo. So why’s it still on the list? Because believe it or not, the move might not be over. The surge is being driven by AI-driven demand for NAND flash memory and supply shortages in the memory chip market — and SNDK is the gateway. The company’s recent earnings report showed profits spiking 672%. The company also extended a joint venture with Kioxia to secure long-term supply amid this AI gold rush. SNDK now earns an A (Strong Buy) Zen Rating, ranking in the 98th percentile of stocks we track. Yes, when a stock runs the way this one has, valuation questions inevitably arise. But with AI infrastructure spending showing no signs of slowing and SNDK positioned as a key supplier in the storage ecosystem, the fundamentals appear to support continued strength.  

🥶 NOT: Looks like Summit Therapeutics (SMMT) is in a free-fall, with share price down nearly 40% in the past year. What's weighing on SMMT? Well, the company faces a critical FDA decision (PDUFA date) in 2026. Some analysts are bullish, with forecasts suggesting as much as 170% upside or more. But our Zen Ratings are a bit more bearish — the stock was recently downgraded to an F (Strong Sell), and has disappointing Component Grades across the board: 

C grades for Value, Growth, and Momentum are the highlights, with D grades for Sentiment, Safety, Financials, and AI. Oh, and did we mention that SMMT ranks #433 out of 483 companies in the Biotech industry with an F industry grade? That’s some serious bottom-tier territory. Our take? Yes, FDA decisions can swing stocks dramatically. And yes, SMMT has the potential to deliver a big payday. But it’s far from a safe bet. With SMMT's technical indicators flashing warning signs (RSI at 33, trading below all major moving averages, MACD negative), the risk-reward appears unfavorable heading into the catalyst. Unless you’re willing to take a serious gamble, there are better opportunities out there. 

🔥 HOT: Pharma giant Merck & Co (MRK) advanced modestly last week while the broader market declined, demonstrating relative strength. The catalyst? Merck is reshaping its oncology strategy through strategic partnerships and collaborations. Most notably, the company announced a new multi-year collaboration with Guardant Health following FDA approval of the Guardant360 CDx diagnostic tool, potentially enhancing MRK's oncology portfolio and revenue streams. Bank of America added MRK to its prestigious "US 1 List," signaling strong institutional confidence. The stock now earns an A (Strong Buy) Zen Rating, ranking in the 96th percentile of all 4600+ stocks we track. MRK boasts A grades for Value, Safety, and Financials — a rare combination suggesting both quality and reasonable valuation. For investors seeking a defensive healthcare play with growth catalysts, MRK offers an attractive risk-reward profile backed by strong institutional support and improving fundamentals.

🥶 NOT: Bitcoin miner Riot Platforms (RIOT) is stuck at a red light, currently sitting below its 10-day and 20-day moving averages — a signal of  short-term weakness that is mirrored by the stock’s recent downgrade from D (Sell) to F (Strong Sell) in our Zen Ratings system. The backdrop? Cryptocurrency mining stocks are facing headwinds as Bitcoin volatility and energy costs squeeze margins. RIOT's news flow has been thin, with only tangentially related coverage about peer Bitfarms' pivot to high-performance computing creating uncertainty about the sector's direction. Going back to our quant ratings, the Component Grades tell a bleak story: D grades for Value, Financials, and AI, and middling C grades for Growth, Momentum, and Safety. RIOT ranks #61 out of 65 companies in the Capital Market industry with a D industry grade.

The thesis? Unless Bitcoin rallies significantly or RIOT announces a strategic pivot, the technical and fundamental picture looks challenging — there are stronger opportunities elsewhere.

What to Do Next?

• 77 Best Stocks 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.