Hot or Not, Stock Market Edition: 08/05/2025

It’s already a busy week in the market. Here are the stock moves we’re following: 

• Hot: A peek at BJ’s Wholesale Club’ (BJ) recent mysterious gain; Reddit (RDDT) continues to impress 
• Not: NuScale Power Corporation (SMR) loses ahead of earnings; Tesla (TSLA) continues to feel pain 

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

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🔥 HOT: Shares of BJ’s Wholesale Club (NYSE: BJ) gained 3.9% on Friday without any major news concerning the company directly. The stock’s gain is likely related to the quarterly jobs report, which showed contraction and slower growth and could indicate that the average consumer will be tightening their belt. Economic downturns can be good for companies like BJ’s, at least in the short term, since more shoppers will be looking to make smart purchases and buy in bulk from wholesale clubs. While that’s far from a certainty, BJ’s also looks solid in terms of Safety, Growth, and Financials, which gives it a B Zen Rating and a Buy recommendation. The stock has been rather choppy lately, but still has plenty of upside.

> Learn more about our Safety ratings here

🥶 NOT: NuScale Power Corporation (NYSE: SMR) lost 11.5% on Friday ahead of its second-quarter earnings report scheduled for next Thursday. Part of Friday’s drop was due to renewed tariff concerns and broad-market action, but the possibility of certain investors offloading shares before a lackluster report cannot be discounted. Our research shows that the company is struggling financially, scoring a D rating in Financials. It’s also been experiencing elevated volatility, which earns it another D rating in Safety. We see a lot of potential for Growth (A rating) from SMR over the next few years, but things could get worse for the company before they get better. We give the stock a C Zen Rating and a Hold recommendation.

🔥 HOT: Reddit (NYSE: RDDT) continued to impress investors on Friday after its second-quarter earnings report exceeded all expectations, and then some. The company’s quarterly revenue was up 78% since last year, more than doubling Wall Street’s consensus estimate. The company also reported that its user base grew by 20% and that its new advertising system is starting to perform as expected, which will drive even higher revenue in the upcoming quarters. Reddit struggled through the middle of the year but now sits up 14.5% YTD. We give the stock B ratings in Growth, Sentiment, and Financials and an overall Zen Rating of B. The company’s guidance for the remainder of the year is strong, and its outperformance last quarter bodes well for the future.

🥶 NOT: Tesla (NASDAQ: TSLA) is still feeling the effects of Elon Musk’s foray into government, as the company’s sales declined again during the second quarter. The stock lost 1.8% on Friday as analysts called into question the company’s ability to produce enough inventory at price points consumers are comfortable with to reverse declining revenue. Sentiment surrounding TSLA is at an all-time low, and our analysis gives it a D rating. Our research also gives TSLA D ratings in Value and Growth, a deadly combo that suggests the company is due for a significant correction. We’re steering clear of Tesla for now and give the stock an F Zen Rating and a Strong Sell recommendation.

What to Do Next?

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