Hot or Not, Stock Market Edition: 08/07/2026

Happy Friday. Two stocks with conviction behind them, two the trend has turned against — here's today's lineup:

• Hot: AI hardware manufacturer Celestica (CLS) is stacking Strong Buys from Wall Street's best; turbocharger specialist Garrett Motion (GTX) is boosting past its peers
• Not: Cable giant Charter Communications (CHTR) has lost its signal; organ transplant innovator TransMedics (TMDX) is a breakthrough with a broken chart

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

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🔥 HOT: Turbocharger specialist Garrett Motion (GTX) is quietly benefiting from the auto industry's course correction. As automakers shift their mix back toward hybrids, the turbo and boosting technology Garrett dominates is getting a second life. The share price reflects it: insider transaction records show the stock rising from around $25 at the end of April to around $35 by mid-June, roughly 30% in six weeks. The shareholder list reads like a value-investing hall of fame, with Baupost, Oaktree, Centerbridge, and Cyrus Capital all holding meaningful positions. 

The grade profile stands out as this week's best. GTX carries a B (Buy) Zen Rating built on Component Grades including As for both Sentiment and Financials, joined by a B for Safety, with nothing lower than a C anywhere — rising analyst conviction, a genuinely strong balance sheet, and below-average volatility. That's the signature of a compounder rather than a story stock. A structural hybrid tailwind combined with smart money already on the register makes Garrett one of the more conviction-worthy small caps in the auto supply chain. 

🥶 NOT:  Organ transplant technology pioneer TransMedics (TMDX) demonstrates that even genuinely life-saving innovation can't overcome a broken chart. Its Organ Care System remains a medical breakthrough, but the stock has faded considerably (down 19% in the past month) as investors reset growth expectations that had once priced in perfection. In fairness to the bulls, insiders are net buyers over the past year … though most of that activity comes from option exercises rather than open-market purchases. 

The ratings suggest the damage runs deeper than price. TMDX holds a D (Sell) Zen Rating, a tier that has historically lost over 6% per year while the broader market gained 11%. It earns F grades for Momentum and Sentiment sit beside a D for Growth — when the price trend, analyst mood, and growth trajectory fail simultaneously, the model reads that as a story that has changed rather than merely paused. And with its rank of #88 out of 97 in its industry, there are probably better options out there. 

🔥 HOT: AI hardware manufacturer Celestica (CLS) has become the assembly line behind the artificial intelligence boom, producing the servers and networking gear hyperscalers can't secure fast enough. The analyst endorsements arrived in a burst last week, with several notable upgrades all on the same day. Across a 13-analyst roster, 12 rate the stock Buy or better and none says Sell, with the average target roughly 40% above the current price and the top call suggesting the stock could see 60% upside. (See all recommendations here.)

The ratings support that enthusiasm. CLS earns a B (Buy) Zen Rating, a tier that has historically returned over 17% annually against roughly 11% for the S&P 500. It also ranks #11 of 33 in the A-rated Electronic Components industry. Looking at the Component Grades that make up the overall rating, it earns B grades in Growth, Sentiment, and Financials point to expanding earnings, strengthening analyst conviction, and a balance sheet holding up under hypergrowth, with no D or F anywhere on the card. In a corner of the market where hype often outruns substance, Celestica is earning its rally the old-fashioned way. 

🥶 NOT: Cable giant Charter Communications (CHTR) is watching investors lose faith in the broadband model. The decline has been unrelenting, and insiders are jumping ship. Liberty Broadband, which owns close to half the company, sold more than $280 million in stock across May, June, and July, including one block trade worth $258 million. Former CEO Thomas Rutledge contributed another $12.7 million in sales of his own. 

The ratings show a company getting ghosted by its own trend. CHTR sits at a C (Hold), but underneath that neutral headline lies the weakest grade in this week's entire pool: an F for Momentum, the most thoroughly broken price trend the model can register, alongside an F for Sentiment. B grades for Value and Safety complete a familiar and dangerous pattern — statistically cheap, fundamentally stable, and falling regardless. Charter may be seen as a bargain, but with smart money exiting and its biggest holder selling in size, this remains a falling knife with a famous name on the handle. 

What to Do Next?

• 77 Best Stocks NOW! >
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