Hot or Not, Stock Market Edition: 08/21/2025

Healthcare stocks are on a roll, while a prominent IPO fizzles. Here’s what’s hot and what’s not today:

• Hot: HCA Healthcare (HCA) continues its hot streak; Universal Health Services (UHS) enjoys optimistic gains 
• Not: Fabrinet (FN) drops following earnings; the market remains undecided about Figma (FIG)

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

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🔥 HOT: HCA Healthcare (NYSE: HCA) has been on a roll since it reported second-quarter earnings on July 25th. The stock has gained 21.4% in a little under a month after it gained another 2.3% on Tuesday. HCA has been buying back shares to the tune of $2.5 billion in the second quarter and has generated $5.9 billion in cash flow through the first half of 2025. Our research shows HCA to be strong across the board, with B ratings in Value, Safety, Financials, and Sentiment. We give the stock a B Zen Rating and a Buy recommendation.

🥶 NOT: Shares of Fabrinet (NYSE: FN) dropped 12.8% after its second-quarter earnings report forecasted weakness for the remainder of 2025. Of particular concern is the prediction that its Datacom business will face supply chain constraints that will put a damper on the current quarter’s sales. Our research gives FN a D rating in Value, suggesting that its price is simply too high given its projected growth over the near term. The company’s recent Momentum is quite good (B rating), and its Financials are stable (B rating), so we opt for a C Zen Rating and a Hold recommendation.

🔥 HOT: While momentum hasn’t been on its side lately, we believe that Universal Health Services (NYSE: UHS) is a stock you should keep your eye on. The stock gained 2.8% on Tuesday, and RBC Capital raised its price target for UHS by approximately 2.5%. Our analysis gives UHS an A rating in Value, reflecting our belief that it’s currently oversold, and B ratings in Safety and Financials. UHS most likely won’t exhibit explosive growth, but its solid fundamentals and current price give it a solid B Zen Rating and a Buy recommendation.

🥶 NOT: Shares of Figma (NYSE: FIG) fell by 8.9% as the market continues to decide how it feels about the recently IPOed design platform. Figma became a publicly traded company on July 31st, gaining 35.9% on its first day before losing 39.9% over the next two weeks. While its recent Momentum looks like a problem, we believe that FIG has some serious Growth potential (B rating) once this initial volatility settles down. We give FIG a C Zen Rating and a Hold recommendation.

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