Hot or Not, Stock Market Edition: 02/17/2026

Happy Tuesday. Here are the stocks making moves in our Zen Ratings system today:

• Hot: Clinical research provider Medpace Holdings (MEDP) is catching fire; Semiconductor player Semtech (SMTC) is gaining momentum. 
• Not: Beauty giant Coty (COTY) is feeling the heat; Defense heavyweight Boeing (BA) is hitting a rough patch.

P.S. Speaking of hot, have you checked out our latest Stock of the Week? 

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🔥 HOT:  Semiconductor player Semtech (SMTC) is catching fire despite broader sector weakness. What's behind the move? Three things: 1) The stock is up above both 10-day and 200-day averages, showing strong upward momentum even as other chip names face rotation pressure. 2) Technical indicators showing strength — RSI at 59.6 suggests room to run before hitting overbought territory, and the MACD remains positive at 2.96. 3) The stock holds a Zen Rating of B (Buy) meaning it’s rated above-average among the 4600+ stocks we track. It scores particularly well with a B Grade for Financials, Momentum, and Safety. The verdict? Buy. Semtech appears well-positioned to continue outperforming, especially if the semiconductor sector finds its footing after recent weakness.

🥶 NOT:  Beauty giant Coty (COTY) is hitting a rough patch. What's going on? 1) The company delivered disappointing Q4 fiscal 2026 results with only 1% year-over-year sales growth, prompting multiple analyst firms to slash price targets. 2) Interim CEO Markus Strobel acknowledged that iconic brands like CoverGirl and Rimmel have faced declining sales, citing operational inefficiencies, SKU proliferation, and a highly promotional environment pressuring margins. 3) The stock holds a Zen Rating of C (Hold), placing it in the middle of the pack. It struggles with alarming F Grades for Momentum and Sentiment, signaling weak investor confidence and price action. The verdict? Keep moving. While Coty's valuation might look tempting (earning a B Grade for Value), the operational challenges and stalled profit growth suggest waiting for clearer signs of a turnaround before deploying capital here.

🔥 HOT: Clinical research provider Medpace Holdings (MEDP) is down nearly 30% in the past month, following mixed Q4 2025 results and 2026 guidance. But could it be a huge buy the dip opportunity? Multiple analysts view this as an overreaction — the company posted revenue of $2.53 billion for full-year 2025 with net income of $451 million, showing solid earnings-per-share growth year over year. 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 an A Grade from our proprietary AI Factor, another A for Financials, and a strong B for Sentiment. The verdict? Despite near-term backlog concerns flagged by analysts, Medpace's competitive positioning in the clinical research space and strong cash generation make this pullback a potential entry point for long-term investors.

🥶 NOT: Boeing (BA) is facing headwinds despite some positive operational developments. Here’s why: 1) Union concerns are mounting following the company's decision to shift engineering jobs to South Carolina operations, with union leaders reporting increased anxiety around potential layoffs and no formal job security guarantees provided by management — execution risk that's raising red flags for investors. 2) While Boeing posted strong January orders and deliveries, outpacing Airbus for the month, the gains are being overshadowed by labor tensions and questions about whether White House pressure on defense contractors to deliver on time could impact cash flow generation. 3) The stock holds a Zen Rating of C, placing it in Hold territory. Its Component Grades aren’t alarming, but perhaps not inspiring either: It has C grades for Financials, Sentiment, Value, and from our AI Factor. The verdict? Despite some operational bright spots like the major Air Force C-17A upgrade contract and solid monthly delivery numbers, the combination of labor strains, execution concerns, and middling fundamental scores suggests waiting for clearer skies before adding exposure.

What to Do Next?

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