Hot or Not, Stock Market Edition: 02/25/2025

What’s hot and what’s not right now? We’ve got the skinny: 

HOT: Applovin (NASDAQ: APP) could present a “buy the dip” opportunity; Kontoor Brands (NYSE: KTB) is making strategic moves that could impact the stock in the near term.

NOT: Despite good earnings, a poor outlook drives Rivian (NASDAQ: RIVN) stock down; Walmart (NYSE: WMT) dips on weak guidance. 

Keep reading to learn more about each stock … and if you like these updates, you’ll love the biggest winners and biggest losers screeners on WSZ.

🔥 HOT: Applovin (NASDAQ: APP) shares dropped by 7.8% on Friday, but we see its current price and movement as a buying opportunity, not a red flag. APP has returned 652% over the last year, and its explosive growth is showing no signs of slowing down. The company, which specializes in mobile advertising, has grown at a faster rate than any other stock listed on the U.S. markets and has a market cap of around $10 billion. In a world where phones are only becoming more entrenched in our lives, we see a lot of upside left for APP and give it a B Zen Rating and a Buy recommendation.

🥶 NOT: EV maker Rivian (NASDAQ: RIVN) announced its fourth-quarter earnings on Friday and revealed that it turned a profit and beat its EPS and revenue numbers by 29.7% and 23.8%, respectively. And its share price fell by 4.7%. What gives? It turns out that despite stronger-than-expected sales last year, Rivian anticipates a major slowdown in 2025 and lowered its full-year guidance accordingly. RIVN is down 2.9% so far this year and 17.4% since this time last year. We see Rivian’s struggle to keep sales up as a major issue, especially as competition in the EV market continues to increase. We take a relatively harsh stance on RIVN, giving it an F Zen Rating and a Strong Sell recommendation.

🔥 HOT: Shares of Kontoor Brands (NYSE: KTB) fell by 1.8% on Friday despite the bullish news that the company was acquiring Helly Hansen for around $900 million. The acquisition is being described as “strategic” by analysts and gives KTB a leg up on competition by diversifying its brand to include outdoor clothing and gear and workwear. We like KTB a lot. It has solid financials and low volatility, and this new acquisition gives it a ton of growth potential. We give KTB an A Zen Rating and a Strong Buy recommendation.

🥶 NOT: Walmart’s (NYSE: WMT) share price fell by 2.5% on Friday, making its two-day loss 8.6% after it lost 6.5% on Thursday. WMT is sending investors mixed signals. On one hand, WMT is up 62.5% year-over-year and 5.3% YTD. On the other hand, it’s fallen sharply over the last week, and analysts are concerned about its ability to compete for customers in the uncertain economic climate. We aren’t running for the hills just yet, but we give WMT a conservative C Zen Rating and a Hold recommendation until further notice.

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