Hot or Not, Stock Market Edition: 06/03/2025

Here’s what we’re following today: 

• HOT: Workday, Inc. (WDAY) shows strong growth potential; Sprouts Farmers Market (SFM) continues to lead its sector 
• NOT: Unpacking Summit Therapeutics’ (SMMT) dramatic drop; Marvell Technology (MRVL) falters in the face of ongoing tariff uncertainty 

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

🔥 HOT: All-in-one workplace software company Workday, Inc. (NASDAQ: WDAY) gained 2.5% on Friday, its first notable gain since it lost 12.5% on May 22nd due to an underwhelming earnings report. The stock gets a B rating in Growth, reflecting the potential it has for continued upside due to its expanding cloud platform and taking into account the likelihood that it will beat its full-year guidance. Our research also gives WDAY B ratings in Sentiment and Financials. Overall, we think WDAY is worth a Buy recommendation and a B Zen Rating at its current price.

🥶 NOT: Marvell Technology (NASDAQ: MRVL) lost 5.6% on Friday despite a positive earnings report after U.S.-China trade tension reared its ugly head again. President Trump reiterated that tariffs would go through as planned, while also stating that China violated the tentative agreement the two countries reached last month. Tech stocks like MRVL are particularly susceptible to trade disruptions. We give MRVL a C Zen Rating and a Hold recommendation since the company’s A rating in Growth is a strong sign that it has room to move if the global economy allows it to.

🔥 HOT: Sprouts Farmers Market (NASDAQ: SFM) gained 3.2% on Friday, leading the Retail/Wholesale sector on a choppy day for the markets. SFM has traded in a loose uptrend since it reported earnings back on April 30th. Our internal analysis gives SFM an A rating in Financials and B ratings in Growth, Momentum, and Sentiment. The only blemish on an otherwise solid set of metrics is the D rating in Value, which indicates that the stock may be slightly overbought. That’s not enough to put us off of SFM entirely, and we give the stock a B Zen Rating and a Buy recommendation.

🥶 NOT: Shares of Summit Therapeutics (NASDAQ: SMMT) plummeted on Friday, losing 30.5% by the closing bell. The company’s experimental lung cancer treatment showed positive but non-statistically-significant results in late-stage testing, squashing virtually all of the optimism surrounding it as a cutting-edge treatment. SMMT was riding high just over one month ago, but is now down 50.7% from its 2025 peak. While this is certainly bad news, it’s not necessarily a death knell. Our research gives SMMT a C Zen Rating and a Hold recommendation, mostly due to its Financials and Momentum maintaining C ratings. However, if you decide to keep your shares, be aware that the F rating SMMT gets in Safety means you should be prepared to weather some ups and downs.

What to Do Next?

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