Hot or Not, Stock Market Edition: 07/03/2026

Happy Friday. Here's what the Zen Ratings are flying high and falling flat on today 

• Hot: Aerospace and defense heavyweight Howmet Aerospace (HWM) is benefiting from rising fleet expansion and defense spending; test and measurement leader Keysight Technologies (KEYS) is cashing in on the AI infrastructure boom. 
• Not: Vietnamese EV maker VinFast Auto (VFS) is running out of charge; chlor-alkali chemicals producer Olin Corp (OLN) is falling behind

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

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🔥 HOT: Aerospace and defense heavyweight Howmet Aerospace (HWM) is capturing significant benefits as global airlines expand fleets and defense budgets rise. The stock has climbed over 60% from its 52-week low, and now trades within striking distance of its 52-week high, reflecting sustained momentum. This is supported by over 30% return on equity and profit margin expansion from over 16% to over 20% in the past year. Analysts remain firmly bullish with 8 of 10 rating it a Strong Buy or Buy, with some analysts projecting nearly 30% upside potential in the coming year.

The fundamentals reinforce the bullish thesis. HWM earns a B Zen Rating from WallStreetZen's 115-factor model, placing it in the top 20% of stocks tracked. Looking at the Component Grades that shape the overall grade, the company scores an A grade for Financials alongside solid B grades across Growth, Momentum, Sentiment, Safety, and AI — a rare quintuple-B combination that reflects broad-based fundamental strength across earnings power, price action, market perception, defensive stability, and AI-driven insights. Bottom line: Aerospace demand tailwinds, elite financials, and broad-based fundamental strength make Howmet one of the strongest industrial plays available today.

🥶 NOT:  Vietnamese EV maker VinFast Auto (VFS) is sputtering as investors lose patience with unprofitable EV growth stories. Reuters recently reported that VinFast's move to shift $7 billion in debt has raised "red flags" among industry observers, compounding concerns after Q1 2026 earnings missed revenue estimates. The stock has plunged nearly 40% from its 52-week high of $5.29 and is now trading just above its 52-week low — a slide backed up by a profit margin sitting below negative 113% and a debt-to-equity ratio of -1.49, with cash burn outpacing what's left in reserves.

The ratings confirm the damage. VFS holds an F-rated Strong Sell, sitting near the bottom of the F-rated Auto industry at #21 of 22. Looking at the Component Grades that shape the overall score, the company earns F grades for Value, Sentiment, and Financials alongside D grades for Growth, Safety, and AI — a rare case where nearly every fundamental pillar is flashing red at once. Bullish analyst price targets haven't changed that story yet, and until VinFast's fundamentals catch up with the hype, this remains one to watch from a safe distance.

🔥 HOT:  Test and measurement leader Keysight Technologies (KEYS) is capturing rising demand across 6G wireless development, semiconductor design, and defense communications — all areas where AI infrastructure buildout is accelerating. Its recent collaboration with WIN Semiconductors to reduce design risk for high-frequency RF components is just the latest catalyst in that story. The stock has surged nearly 120% from its 52-week low of $152.85, backed by Q2 2026 earnings that beat expectations on strong momentum in the Communications and Industrial segments. Analysts remain overwhelmingly bullish, with 7 of 10 covering the stock rating it a Strong Buy, and Susquehanna's Mehdi Hosseini (a top 1% analyst) targeting $425 a share — implying over 25% upside from current levels.

The fundamentals back it up. KEYS earns a B Zen Rating and the stock is placed in the top 6% of stocks tracked. Looking at the Component Grades that shape the overall score, the company scores A grades for Momentum, Financials, and AI alongside a solid B for Sentiment — a triple-A combination reflecting strong price momentum, exceptional financial strength, and cutting-edge AI-driven insights. With a #2 ranking in the B-rated Scientific & Technical Instruments industry and forecast earnings growth near 24% a year, Keysight is proving that AI and defense tailwinds can translate into real, measurable financial strength — not just a good story.

🥶 NOT:  Chlor-alkali chemicals producer Olin Corp (OLN) is getting punished for a deal Wall Street doesn't trust. Its proposed $12.5 billion merger with Huntsman was meant to create an integrated chemicals leader — instead, Bank of America's Steve Byrne downgraded the stock to Sell with a $21 price target on June 30, and class action law firms have since launched shareholder investigations into the deal. The stock has plunged nearly 35% from its 52-week high of $30.46, with its profit margin slipping from positive to negative territory over the past year and debt-to-equity climbing above 3.2.

The Zen ratings underscore the deterioration. OLN holds a D-rated Sell and, despite sitting in the A-rated Specialty Chemical industry, ranks near dead last at #47 of 52 — a striking underperformer next to top-ranked peers like Fuller H B Co (FUL). Looking at the Component Grades that shape the overall score, the company earns a D for Growth, with only an A for AI and a B for Safety offering any real bright spots. Near-dead-last positioning in an otherwise strong industry is a tough case to defend when better specialty chemical plays are sitting right next to it in the rankings.

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