These stocks are working up a sweat — some in a good way, some in a not-so-good way.
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🔥 HOT: San Diego-based biotech company Illumina (NASDAQ: ILMN) continued to rally on Tuesday after it announced late Monday that it was purchasing Somalogic, a clinical diagnostic company out of Boulder, Colorado. Shares rose by 1.9%, bringing its total gain since the announcement to 3.8%. Our research paints ILMN as an attractive biotech for people who usually avoid biotech stocks due to high volatility. ILMN gets an A rating in Growth and B ratings in Value, Financials, and — crucially — Safety. We give the stock a Zen Rating of B and a Buy recommendation.
🥶 NOT: Enterprise network and cloud computing company Equinix (NASDAQ: EQIX) lost 9.1% after it agreed to pay a settlement to investors for misrepresenting its AI capabilities and manipulating its financial reports. The issue is the breach of trust, more so than any dollar amount that the company will have to pay. Sentiment surrounding the stock is becoming increasingly negative, and the discourse is dominated by claims that EQIX is overbought. Our research gives EQIX C ratings across the board except for the Value metric, which earns a D rating. Overall, we give EQIX a C Zen Rating and a Hold recommendation.
🔥 HOT: Shares of Google’s parent company, Alphabet (NASDAQ: GOOGL), gained 2.3% on Wednesday after the company unveiled a new AI tool for developers called Gemini CLI. The tool is designed to help programmers integrate AI into their workflows easily and is available free of charge with generous usage limits. GOOGL is still a strong tech stock despite being down 10.5% YTD. The company’s Financial rating is A, and its Sentiment score is a B, giving it an overall Zen Rating of B and a Buy recommendation.
🥶 NOT: Payroll management provider Paychex (NASDAQ: PAYX) lost 9.4% after reporting disappointing fourth-quarter earnings on Wednesday. The company missed its revenue projections by a little over 1.0%, which, when combined with the general negative Sentiment (D rating) surrounding the company right now, led to the mini selloff. Our analysis gives PAYX a B rating in Momentum and an A in Financials, but the D rating in Sentiment prevents it from getting a Buy rating. Instead, we give the stock a C Zen Rating and a Hold recommendation.
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