Hot or Not, Stock Market Edition: 02/06/2026

By Jessie Moore, Stock Researcher and Writer
February 6, 2026 7:30 AM UTC
Hot or Not, Stock Market Edition: 02/06/2026

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

  • Hot: Software provider Pegasystems (PEGA) looks poised to outperform; steel manufacturer Steel Dynamics (STLD) is gaining momentum
  • Not: Internet search giant Baidu (BIDU) is losing steam; regional bank Truist Financial (TFC) is facing headwinds

P.S. What can a pig farmer from the 1800s tell us about the future of the market? The truth will astound you.


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🔥 HOT: App software provider Pegasystems (PEGA) appears positioned for a breakout. Why? A few reasons: 1) Big, fancy certifications: The stock just earned its ISO/IEC 42001:2023 certification for AI governance standards, a move that could accelerate adoption of its AI solutions. 2) Top-rated analysts like Blair Abernethy of Rosenblatt (a top 10% analyst) are bullish on the stock, with price targets that suggest up to triple-digit upside, supporting its potential as an overlooked investment opportunity in the artificial intelligence space. 3) The stock was recently upgraded to a Zen Rating of A (Strong Buy), meaning it currently ranks in the top 5% of stocks based on a 115-factor review. It scores particularly well with an A Grade for Financials and a B Grade for Sentiment. The verdict? Buy. With fresh AI certifications that differentiate it in the enterprise software market and strong analyst backing, Pegasystems is making moves worth watching.

🥶 NOT: Internet content and information company Baidu (BIDU) is hitting a rough patch. What happened? Despite an uptick after the company announced a buyback, the stock only earns a C (Hold) Zen Rating, placing it in an unexceptional tier of stocks we track. 2) The company's growth metrics are severely challenged, earning an F Grade for Growth. Its Financials also struggle with a C Grade, suggesting underlying fundamental weakness. 3) Overall sentiment remains tepid with a C Grade for Sentiment, and the stock's Safety Grade is also middling at best. The verdict? Be cautious. Even with AI ambitions and potential dividend growth, Baidu's fundamental weaknesses and middling Zen Rating suggest there are better places to park your money right now — like these underappreciated AI picks.

🔥 HOT: Industrial manufacturer Steel Dynamics (STLD) is heating up. Why? Three reasons 1) The stock has surged over 14% in the past week, riding strong momentum that's carried it well above its moving averages across all timeframes. 2) While BlueScope Steel rejected an $8.8 billion takeover bid, the heightened M&A chatter in the steel sector signals potential consolidation activity that could benefit well-positioned players like STLD. 3) The stock was recently upgraded to a Zen Rating of A (Strong Buy) placing it in the top tier of the 4600+ stocks we track. It scores above-average B Component Grades in several key areas: Financials, Growth, Momentum, and Value. The bottom line? Steel Dynamics is galloping ahead with impressive momentum and solid fundamentals across the board, making it an attractive play in the industrials space.

🥶 NOT: Regional bank Truist Financial (TFC) is feeling a serious chill. Why? A few concerns: 1) The stock was recently downgraded to a Zen Rating of just F (Strong Sell), placing it near the very bottom of the thousands of stocks we track. 2) Low rating within its industry: TFC currently ranks a dismal 278 out of 280 in the Bank industry, which itself earns a D Grade for Industry Rank. 3) The company struggles across nearly all fundamental metrics, with an F Grade for Growth and weak grades for Value (C), Sentiment (D), and Financials (C). While it did launch an AI-enabled receivables platform that could improve efficiency, that lone catalyst isn't enough to offset the broader picture. The bottom line? Despite recent share price gains, the underlying fundamentals paint a troubling story. Truist Financial is stuck at a red light with bottom-tier ratings and struggling fundamentals, making it a name to avoid until we see meaningful improvement.

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