Hot or Not, Stock Market Edition: 05/09/2025

• HOT: Gen Digital (GEN) soars following upbeat earnings; why Centene Corporation (CNC) may be an undervalued gem
• NOT: Why is Apple (AAPL) losing ground? Plus, the story behind Owens Corning’s (OC) recent drop

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

🔥 HOT: Centene Corporation (NYSE: CNC) is a diamond in the rough, in our opinion. Our research gives the company an A rating in Value and a B rating in growth, signaling that its current price is not representative of its potential future value. The stock gained 5.4% on Wednesday after wealth management firm Bernstein raised its price target for CNC from $81 to $86. We give CNC a Zen Rating of B and a buy recommendation.

🥶 NOT: Roofing, insulation, and fiberglass manufacturer Owens Corning (NYSE: OC) lost 8.6% on Wednesday after its first-quarter earnings call revealed a surprise loss due to divesting one of its core branches. The company’s guidance for the remainder of the year cautioned investors that it expects its new construction and remodeling business to remain relatively stifled due to the ongoing fears of a recession. We give OC a B rating in Value but a D rating in momentum since the company has lost more than the broad market so far this year and is down 24% YTD.

🔥 HOT: Shares of Gen Digital (NASDAQ: GEN) gained 8.2% on Wednesday after an upbeat earnings report that saw the company beat its EPS and revenue targets for the first quarter. The company’s CEO, Vincent Pilette, issued strong guidance for the remainder of 2025 and encouraged investors by predicting that the company’s recent acquisition of MoneyLion will increase its customer base and lead to accelerated growth. We tend to agree with Mr. Pilette and give GEN a B Zen Rating and a Buy recommendation.

🥶 NOT: Apple (NASDAQ: AAPL) continued to lose ground on Wednesday, dropping 1.1% by the closing bell amid concerns over the company’s ability to withstand tariff-related headwinds. The company’s senior vice president of services, Eddy Cue, testified in a Department of Justice hearing that the company saw searches fall for the first time ever, something he attributes to the increasing use of AI over traditional search engines like Google and Bing. If this trend continues, it could put Apple’s partnership with Google in jeopardy. All in all, there’s too much uncertainty surrounding Apple right now for our tastes. We give AAPL a C Zen Rating and a Hold recommendation. (Are the stocks on your watchlist on our Strong Sell list?)

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