Happy Thursday. Two stocks with real fundamentals and stellar Zen Ratings, two riding headlines … Here's today's lineup:
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🔥 HOT: Fuel distribution giant Sunoco (SUN) heads into its August 4 earnings report with everything moving in its favor. The partnership, which distributes motor fuels across the U.S., just announced its redomiciliation to Texas alongside parent Energy Transfer, streamlining its structure after a Q1 that beat estimates on higher sales volume. The outlook is good looking forward, too: EPS is forecast to nearly double over the next year. Investors have responded favorably: shares are up more than 50% from their 52-week low, yet Wall Street forecasts more upside ahead. Currently, all seven covering analysts rate the stock a Buy or Strong Buy (see forecasts here).
The ratings confirm the strength. SUN earns an overall B (Buy) Zen Rating, a tier that has historically returned over 17% annually versus roughly 11% for the S&P 500. An A grade for Growth leads the profile, joined by B's for Momentum, Sentiment, and AI. Income plus growth at new highs, with Wall Street unanimous behind it, is about as clean a setup as the energy sector offers.
🥶 NOT: Bitcoin miner CleanSpark (CLSK) just grabbed headlines with a $6.6 billion, twenty-year AI data center lease that sent shares up nearly 10% in a day. But one press release can't repair a broken financial foundation. Dig deeper and you’ll find that the company lost over $500 million in the trailing twelve months with a profit margin around negative 73%, operating cash flow is deeply negative, and its cash position may not cover next year's projected outflows. Even after the pop, the stock sits around 45% below its 52-week high, insiders including the CEO have been steady sellers, and its regular spot on "most-shorted" lists suggests much of the trading action is squeeze speculation rather than conviction buying.
The ratings tell the fuller story. CLSK carries an F (Strong Sell) Zen Rating, ranking #61 of 62 in the F-rated Capital Markets industry, with F grades for Value, Sentiment, Safety, and Financials — a stock that is expensive relative to its fundamentals, financially fragile, and lacking Smart Money support. The AI pivot makes for an exciting headline, but until the underlying numbers improve, CleanSpark remains a speculation rather than an investment.
🔥 HOT: Visual discovery platform Pinterest (PINS) is staging a turnaround and reinventing itself as an AI-powered shopping engine. It recently rolled out an experimental "Ask Pinterest" app and added Amazon Storefronts for direct purchases, moves that led to a slew of fresh Strong Buy ratings from top-rated analysts, with some pounding the table on over 60% potential upside in the coming year. Adding fuel to the forward-looking fire? EPS is forecasted to nearly quadruple within a year.
These exciting catalysts have resulted in a recent upgrade in our Zen Ratings, where PINS currently earns a B (Buy) with B grades in both Value and Financials, an uncommon combo for a social media stock. Value-wise, the stock carries a PEG under 0.7 (anything under 1 is considered a screaming value) while generating more than $1 billion in operating cash flow from a healthy balance sheet. Its D for Momentum is honest about one thing: the price trend hasn't turned yet. That's exactly what makes it an opportunity for early arrivals instead of a crowded trade.
🥶 NOT: Bitcoin miner turned AI data center hopeful IREN (IREN) is a case study in a narrative outrunning its numbers. Despite loud AI-pivot buzz, the stock has lost nearly half its value from its 52-week high, including a 12% one-day plunge during a governance backlash — a decline our own team anticipated when featuring it in "2 Stocks to Short in July." Even the people closest to the company appear unconvinced: both co-CEOs unloaded a million shares each, roughly $33 million apiece, while JP Morgan's Reginald Smith remains the only covering analyst at Strong Sell, warning of the risk the crowd keeps ignoring.
The model agrees with him. IREN's F (Strong Sell) Zen Rating places it in the system's worst-performing tier, which has averaged a 13% annual loss, and it ranks dead last at #62 of 62 in the F-rated Capital Markets industry. F grades for Growth and Sentiment, plus D's in Value, Safety, and Financials, describe stalled earnings, eroding confidence, and a price the business can't yet justify. The AI ambitions may prove real someday, but when management is selling this heavily, patience costs nothing and buying could cost plenty. .
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