Hot or Not, Stock Market Edition: 05/08/2025

What’s flying sky-high — and what appears to be coming in for a landing? Here are our top watches RN: 

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

🔥 HOT: Shares of Leidos Holdings (NYSE: LDOS) gained 4.6% on Tuesday after a strong first-quarter earnings report. The company’s EPS was 18.8% higher than consensus estimates, and its revenue was just over $150 million above projections, amounting to a 4% gain year-over-year. We feel that LDOS is one of the best stocks to add to your portfolio, given the current elevated volatility we’re seeing in the markets. Our analysis gives LDOS an A rating in Safety and B ratings in Sentiment, Financials, and Growth. Overall, we see LDOS as a Strong Buy and give it an A Zen Rating.

🥶 NOT: Summit Therapeutics (NASDAQ: SMMT) lost 13.6% on Tuesday as the pharmaceutical industry became the latest sector affected by tariffs. President Trump announced that pharmaceutical companies would be subject to new tariffs within the next two weeks. Without any details to go on, Wall Street started taking off some risk to prepare as much as possible for whatever changes may be in store. Summit has solid B ratings in Momentum and Sentiment, but it has a weak D rating in Growth and an F rating in Safety. It’s not clear that the news warrants selling any shares of SMMT you own, but it seems like a bad time to add to any position you have. We give SMMT a C Zen Rating and a Hold recommendation.

🔥 HOT: Universal Health Services (NYSE: UHS) added 3.4% on Tuesday, bringing its current rally to a respectable 13.9%. Its current hot streak began after a post-earnings selloff that saw the stock lose as much as 6.5% before reversing. Several firms downgraded UHS due to the lackluster guidance it provided during its earnings call, but it seems like it may have been premature. Our research gives UHS an A rating in Value and B ratings in Financials and Safety. All told, UHS looks like an attractive mid-term play, and we give it a Zen Rating of B and a Buy recommendation.

🥶 NOT: Palantir Technologies (NASDAQ: PLTR) is having an outstanding year. The company’s stock is up 42.9% YTD, and it’s one of the few stocks that’s bounced all the way back to where it was prior to the tariff selloff. It appears, however, that reality may be setting in for PLTR, as the stock dropped by 12.1% on Tuesday due to questionable guidance for the remainder of 2025. PLTR was down an additional 1.3% after hours as of this writing. The big picture for Palantir remains largely unchanged. The company’s Financials remain strong, and its Momentum and potential for Growth are still there. With that said, we see the company as overbought right now, and the D rating we give it in Value (here’s why that matters) drags down its Zen Rating to a C.

What to Do Next?

• 200 Stocks to Sell Now >
• See All “A” Rated Stocks with +32.52% Average Annual Return >
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