Hot or Not, Stock Market Edition: 06/23/2026

Happy Tuesday. Here are the stocks our Zen Ratings are smiling and frowning upon today:

• Hot: Defense player Astronics (ATRO) quietly cleans up amid the broader aerospace recovery; specialty chemical maker Chemical & Mining Co of Chile (SQM) is perking up
• Not: Defense contractor Firefly Aerospace (FLY) doesn’t have the fundamental goods to make a strong case for investing; semiconductor player Wolfspeed (WOLF) isn’t as hot as its semi companions 

P.S. Speaking of stocks coming in hot, have you checked out our no-paywall, weekly LIVE training? Last night, our Editor-in-Chief revealed his latest Trade of the Week and more. Grab your spot for the next one here.

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🔥 HOT: Defense player Astronics (ATRO) is benefiting from one of the strongest trends in industrials right now: The global aerospace recovery. As Boeing and Airbus work through massive aircraft backlogs and increase production rates, demand is rising for the electrical systems, connectivity equipment, and cabin technologies that Astronics supplies. The improving outlook is reflected in the numbers. Astronics recently reported a record backlog and growing bookings, providing strong visibility into future revenue growth. The Zen Ratings agree that the catalyst is real: The stock earns an overall A rating, which amounts to a Strong Buy recommendation, currently ranking in the top 2% of stocks tracked based on fundamentals. Looking at the Component Grades that shape the overall grade, it scores an A for Growth along with B grades for Financials, Momentum, and Safety. Bottom line: with commercial aircraft production accelerating and demand for aerospace electronics rising, Astronics appears well-positioned to capitalize on one of the industry's most powerful tailwinds.

🥶 NOT: Defense contractor Firefly Aerospace (FLY) is a stock built more on future potential than proven results. Shares have plunged nearly 30% over the past month as investors reassess the company's lofty expectations and execution risks. While bulls point to launch contracts, lunar missions, and defense opportunities, Firefly still has to prove it can consistently turn those opportunities into profitable growth. Until then, the risk appears to outweigh the reward. The Zen Ratings are similarly skeptical. FLY was recently downgraded to an F rating, or Strong Sell recommendation. The Component Grades are similarly dismal: The company earns D grades for Value, Sentiment, Safety, Financials, and AI, signaling weakness across nearly every major factor that has historically driven long-term stock performance. Listen. Firefly may have exciting technology and ambitious growth plans, but right now investors are paying for potential rather than proven results.

🔥 HOT: Specialty chemical maker Chemical & Mining Co of Chile (SQM) is quietly gaining as investor sentiment shifts kindly toward beaten-down lithium stocks. As one of the world's largest lithium producers, the company combines scale, profitability, and low-cost production, giving it a competitive advantage when commodity markets eventually recover. The fundamentals support the optimism. SQM earns an overall Zen Rating of A, amounting to a Strong Buy recommendation — meaning the stock passed our 115-factor fundamental review and landed in the top 5% of stocks analyzed. The company’ specific strengths shine through the 7 Component Grades: It earns an A for Momentum and above-average Bs for Financials, Growth, and Value, reflecting a combination of strong operating performance and improving investor sentiment. Key takeaway? While many lithium stocks remain speculative bets on a future recovery, SQM offers investors exposure to the sector through one of its highest-quality and financially strongest operators.

🥶 NOT: Semiconductor player Wolfspeed (WOLF) is up a staggering 200%+ in the past 3 months, but is it really worth the hype? Our quant ratings system suggests caution. Here’s why: Behind the scenes, the company continues to face significant financial pressure as it invests heavily in manufacturing capacity while struggling to generate the revenue and profitability needed to support those investments. Meanwhile, demand uncertainty in key end markets such as electric vehicles has made investors increasingly skeptical about the timing and magnitude of Wolfspeed's eventual payoff. The Zen Ratings shows this skepticism by rating WOLF a lowly F, a Strong Sell recommendation. The company earns F grades for both Financials and Value, along with D grades for AI, Growth, and Safety, signaling weakness across nearly every major factor that has historically driven long-term stock performance. Your takeaway? While its technology is exciting, Wolfspeed faces too many operational and financial challenges to justify the risk when stronger semiconductor opportunities are available elsewhere. (See over 60 better-rated semiconductor stocks here.)

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