Hot or Not, Stock Market Edition: 02/12/2026

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

• Hot: Pharmaceutical player Neurocrine Biosciences (NBIX) looks poised to outperform; oil & gas services heavyweight Weatherford International (WFRD) is gaining momentum.
• Not: Asset manager Ares Capital (ARCC) is losing steam; EV maker Nio Inc. (NIO) is stuck in neutral.

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

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🔥 HOT:  Oil & gas equipment and services heavyweight Weatherford International (WFRD) is gaining momentum. Why? Three catalysts: 1) The stock has surged over 35% in the past 3 months, enjoying strength following a Q4 earnings beat, with improved margins, reduced leverage, and a dividend increase that exceeded market expectations. 2) The company also announced new long-term contracts, particularly strong performance in Latin America, and robust cash generation—all signaling operational strength and positive momentum heading into 2026. 3) The stock holds a Zen Rating of B (Buy) and currently ranks in the top 6% of stocks we track based on our quant system’s 115-factor review. Looking at the Component Grades that shape the overall grade, it scores particularly well with an A Grade for Financials and Sentiment. The bottom line? The recent earnings beat, margin expansion, and upgraded rating from Hold to Buy suggest Weatherford is catching a fresh wave in the oilfield services sector.

🥶 NOT: Chinese EV maker Nio Inc. (NIO) is stuck in neutral. What's going on? 1) The company faces continued challenges in converting its ambitious growth plans into profitability, with the latest earnings showing revenue of just $3.1B for fiscal 2024 — up a modest 4% year-over-year—while still hemorrhaging cash. 2) Analyst sentiment is mixed — some project upside, but several project double-digit downside (See the ratings) 3) The stock was just downgraded in our Zen Ratings from a C (Hold) to D (Sell). Looking at the Component Grades, NIO struggles with an F Grade for Sentiment and a D Grade for Financials. The verdict? Sell. Despite some optimism around NIO's AI-powered technology and industry ranking (#15 of 24 in Auto), the combination of poor profitability metrics and negative sentiment suggests this EV story needs a major recharge before it's worth your investment dollars.

🔥 HOT: Pharmaceutical player Neurocrine Biosciences (NBIX) is only up about 4% in the past month, but it could be poised to outperform. Why? 1) The company initiated a Phase 2 trial for its next-generation VMAT2 inhibitor, building on its proven tardive dyskinesia franchise and signaling potential future revenue expansion beyond its blockbuster drug Ingrezza. 2) Ahead of its next earnings report, multiple articles are highlighting strong Ingrezza sales momentum, growing Crenessity revenues, and a promising late-stage pipeline — all pointing to positive catalysts in the near term. 3) The stock holds a Zen Rating of B (Buy), meaning it currently ranks in the top 20% of stocks based on a 115-factor review. It scores particularly well with above-average Bs for Value, Growth, and Financials — indicating more stability than you might expect with a pharma stock. The verdict? Buy. With a robust pipeline, solid commercial execution, and a recent upgrade to Buy, Neurocrine appears well-positioned for continued outperformance in the biotech space.

🥶 NOT:  Asset manager Ares Capital (ARCC) is losing steam. Falling interest rates could pressure Business Development Company (BDC) yields and dividend coverage, with some analysts suggesting more BDCs may soon cut their dividends — a red flag for income-focused investors. For example, Golub Capital already slashed its dividend by 15% and saw rising non-accruals, raising concerns about broader credit quality issues in the BDC sector. The stock was recently downgraded to a C (Hold) Zen Rating, and currently only ranks #36 out of 81 in the D-rated Asset Management industry. Looking at its Component Grades, it has a D for Value and Cs in just about every other area. Considering the mounting dividend risk and ho-hum ratings, there may be better places to park your money right now (need ideas? Check out our latest video featuring 3 high-potential stocks to watch right now.)

What to Do Next?

• 77 Best Stocks NOW! >
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