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

What’s hot and what’s not in the market today? Here’s the inside scoop:

• HOT: Guidewire Software (GWRE) has an earnings surprise; Taiwan Semiconductor Manufacturing Company (TSM) isn’t scared of tariffs 
• NOT: Dollar Tree (DLTR) issues scary guidance; CrowdStrike Holdings (CRWD) issues weak guidance 

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

A note from our sponsors...
Trump's Tariffs Are Reshaping Markets  

With the help from his system, Wall Street Legend reveals which companies could thrive and which could collapse under new economic policies.   

Grade any 3 stocks FREE to see if your portfolio is at risk.

🔥 HOT: Insurance software company Guidewire Software (NYSE: GWRE) surprised everyone on Wednesday by turning in a quarterly EPS of $0.88, almost double the $0.46 Wall Street expected to see. The stock is now up 49.4% YTD, with impressive B ratings in Momentum and Safety. The company has weathered the 2025 economic storm better than most of its competition, earning it a B Zen Rating and a Buy recommendation.

> Learn more about how we rank stocks for Safety here

🥶 NOT: Dollar Tree (NASDAQ: DLTR) reported earnings before the open on Wednesday, beating Wall Street’s projections for both its revenue and EPS. However, the report included forward guidance that suggests the company’s EPS may drop as much as 50% for the second quarter, sparking an 8.4% drop in its share price. Sentiment surrounding DLTR has been quite negative lately, and the company’s Growth potential (C rating) and Value (C rating) leave a lot to be desired. DLTR has performed well so far this year, gaining 17.2% YTD, but it may underperform the market in the near term. We give DLTR a C Zen Rating and a Hold recommendation.

🔥 HOT: Taiwan Semiconductor Manufacturing Company (NYSE: TSM) gained 2.4% on Wednesday after the company’s CEO, C.C. Wei, assured investors that the company will be less affected by tariffs than previously thought. The company is also well underway in building its second plant in Japan, a move that will help it produce more of its 6-nanometer chips to meet increasing demand. We give TSM a C rating in Safety due to the uncertainty surrounding its future, given threats from tariffs and Chinese interference. On the other hand, the company gets an A rating in Financials and remains one of the most important chip stocks on the market. We give TSM a B Zen Rating and a Buy recommendation.

🥶 NOT: CrowdStrike Holdings (NASDAQ: CRWD) lost 5.8% after its quarterly earnings report included weak guidance for the upcoming quarter. The company said that it expects its subscription revenue to drop by $10 million for each of the next three quarters as it rolls out a new customer commitment program. The company also missed its revenue projections by $1.2 million. Our analysis gives CRWD D ratings in Value and Safety and C ratings in Sentiment and Financials. The company is up on the year, but its weak guidance for the second quarter makes acquiring more shares a risky proposition. We give CRWD a C Zen Rating and a Hold recommendation.

What to Do Next?

• 200 Stocks to Sell Now >
• See All “A” Rated Stocks with +32.52% Average Annual Return >
• 2 New Stocks to Buy from Steve Reitmeister >

Want to get in touch? Email us at news@wallstreetzen.com.