Hot or Not, Stock Market Edition: 06/05/2025

What’s on the move this fine Friday Junior? Here’s what we’re following: 

• HOT: Woodward’s (NASDAQ: WWD) has returned over 35% so far this year; Credo Technology Group (CRDO) shines despite increased volatility
• NOT: FactSet Research Systems (FDS) falls on new CEO news; Kenvue (KVUE) logs a large loss

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

🔥 HOT: Aerospace equipment manufacturer Woodward (NASDAQ: WWD) gained 5.7% on Tuesday, extending its hot streak and bringing its yearly return to 37.4%. Part of Tuesday’s momentum was due to Deutsche Bank upgrading its price target for WWD to $291, an approximately 25% premium over its current share price of $230.66. Our research indicates that WWD’s outperformance is due to solid Financials and a strong business plan, both of which bode well for its future growth. We give WWD a B Zen Rating and a Buy recommendation.

🥶 NOT: Shares of FactSet Research Systems (NYSE: FDS) fell by 4.8% on Tuesday after the company announced that its new CEO will be Sanoke Viswanathan as of September. Tuesday’s drop is likely due to the market’s general distaste for uncertainty rather than any specific problem it has with the new appointment. Our internal metrics show that the company is in a strong position, with B ratings in Safety and Financials. Still, we give FDS a C Zen Rating and a Hold recommendation to reflect the increased volatility that will most likely accompany the changing of the guard.

🔥 HOT: Credo Technology Group (NASDAQ: CRDO) gained 14.8% on Tuesday after its first-quarter earnings report showed that the company more than doubled its revenue last year compared to the previous year. The company’s full-year guidance for this year indicates that it expects an 80% increase in revenue through 2026. Our analysis gives CRDO an A rating in Growth, reflecting the stock’s above-average potential for parabolic growth over the next few years. CRDO’s increased volatility gives it a D rating in Safety, which ultimately lowers its Zen Rating to B. Still, our quant ratings system still rates the stock a Buy.

🥶 NOT: Kenvue (NYSE: KVUE), the former consumer health division of Johnson & Johnson, logged its largest loss to date on Tuesday, falling by 6.2% amid concerning comments from its CEO, Thibaut Mongon. Mr. Mongon told investors that he’s concerned about decreased spending from consumers due to macroeconomic concerns. He also mentioned that sales for the current quarter are similar to sales for the first quarter, which represented an almost 4% decline from the first quarter of last year. The question is whether or not KVUE will be able to weather any economic downturn better than its competition. Our research suggests that the company is prepared to handle a decent-sized contraction, and we give it an A rating in Safety. Overall, however, we give KVUE a C Zen Rating and a Hold recommendation due to the current negative Sentiment surrounding the stock and uncertainty about its near-term growth potential.

What to Do Next?

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