Happy Friday. Here are the stock stories we're following today:
P.S. Speaking of hot, don’t miss this powerful roundup of 3 stocks with massive upside potential in the near term.
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The 10 Best AI Stocks to Own NOW-Yours FREE If you've been following the AI revolution, there's a chance you can guess who's #1 on my brand new list of the best AI stocks to own (if you are lucky, you may even own some shares of this powerhouse already). But I doubt you can guess who's #3 on the list. (HINT: It delivers a technology that's critical to the AI revolution and will soon be embedded in countless consumer products.) Learn the names of all 10 stocks here. FREE.🔥 HOT: Marketing tech player Zeta Global Holdings (ZETA) is down 34% in the past month, but it could be poised for a turnaround. Despite recent volatility, the company is growing organically at over 20%, expanding margins, and improving cash flow as dilution falls — fundamentals that suggest the recent selloff was overdone. Supporting this thesis? The stock holds a Zen Rating of B (Buy), placing it in the top 20% of stocks overall. It scores particularly well in two key Component Grades that shape the overall rating — Financials and Growth. That’s a great combo for investors looking for a company with a solid balance sheet with strong growth prospects. The bottom line? With strong organic growth and improving profitability, Zeta looks like a compelling buy-the-dip opportunity for investors willing to stomach some near-term choppiness.
🥶 NOT: Telecom operator Lumen Technologies (LUMN) is struggling to find its footing as analysts turn cautious. What's going on? 1) Citigroup recently downgraded its price target while maintaining a Neutral rating, signaling concern about the company's near-term prospects. UBS also maintained its Neutral stance. 2) The stock is up nearly 20% in the past week, but that momentum appears to be fading as it trades below its 10-day, 20-day, and 50-day moving averages, suggesting weakening short-term momentum. 3) The stock holds a Zen Rating of C (Hold), meaning it’s middle-of-the-road according to our quant ratings system. Looking at the Component Grades for clues as to why, it struggles with a D Grade for Growth and C Grades for Momentum, Safety, and Value. The takeaway? With mixed analyst signals and weak Growth scores, Lumen lands firmly in wait-and-see territory — better to watch from the sidelines until the picture clears. (See 44 Telecom stocks that rank higher than LUMN here)
🔥 HOT: Design software leader Autodesk (ADSK) is catching fresh momentum despite a rough few months. What's behind the move? 1) The company just made headlines by suing Google over AI-powered movie-making software, signaling it's playing offense to protect its Flow trademark in the visual effects and production management space — a sign of competitive strength in the red-hot AI design market. 2) J.P. Morgan recently upgraded the stock to Overweight, citing Autodesk's leadership in design and BIM software and its rapid adoption of cloud and AI technologies across high-growth verticals like data centers and infrastructure. 3) The stock holds a Zen Rating of B (Buy), ranking in the top 12% of the 4600+ stocks we track based on a 115-factor review. Looking at the Component Grades, it scores particularly well with an A Grade from our AI Factor and Financials and a B Grade for Sentiment. The verdict? With AI tailwinds building and Wall Street taking notice, Autodesk appears positioned for a breakout despite near-term volatility. (For more AI players poised to outperform, check out this video.)
🥶 NOT: Fintech services giant Fidelity National Information Services (FIS) is losing steam, down nearly 30% in the past month as momentum indicators flash warning signs. What happened? 1) Technical readings showing extreme weakness — the relative strength index sits at just 19.6, and the stochastic oscillator has dropped to 2.5, both signaling severely oversold conditions that reflect aggressive selling pressure. Combined with the diminished share price, we see a clear downtrend across multiple timeframes. 2) Earnings uncertainty: Earnings are coming up on February 24, and investors are nervous. While the company did raise its quarterly dividend by 10% to $0.44 per share and introduced a new Asset Servicing Management Suite to automate key functions, these announcements haven't been enough to reverse the selling pressure. (Need more earnings season guidance? Read this.) 3) The stock was just downgraded to a Zen Rating of C (Hold). Digging into the Component Grades, it does enjoy a B for Value, but that’s about the only bright spot — otherwise it’s straight Cs for Growth, Sentiment, Safety, and Financials, and a disappointing D for Momentum. The verdict? Hold. The technical damage is severe, and with earnings on the horizon, it's a wait-and-see situation.
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