Hot or Not, Stock Market Edition: 08/25/2026

Happy Tuesday. Here's what's hot and what's not in the market and in our Zen Ratings...

🔥 HOT: All eyes are on Nvidia (NVDA) ahead of earnings; Ross Stores (ROST) exceeds expectations

🥶 NOT: Bitcoin’s rally doesn’t make Strategy (MSTR) buy-worthy; despite strong sentiment, SpaceX (SPCX) remains watch-only.

P.S. Speaking of hot ... Should you follow NVDA's recent investment in INTC?

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🔥 HOT: AI heavyweight Nvidia (NVDA) has the market's full attention with earnings due Wednesday, a report that puts the entire AI trade on notice. Shares remain nearly 10% under their spring high as of writing, yet analysts still model revenue expanding around 30% annually, and the average price target implies roughly 50% upside from here. 

The Zen Ratings agree: NVDA holds a B (Buy recommendation) anchored by an underlying Component Grade of A for Financials, a grade that places it in the top 1% for that component and among the top 20 of all stocks we track. But be aware: Its D for Safety keeps real risk on the table. But overall, put together, that describes a financially elite business with meaningful room to run, paired with enough volatility to keep investors on edge.  

🥶 NOT: Bitcoin proxy Strategy (MSTR) is ripping higher once more as Bitcoin surges, with shares up more than 15% over the past week as of writing. Wall Street sees enormous room ahead, with the average analyst target sitting 75% above the current price … but the business underneath stays extremely volatile and recently reported massive losses tied to its Bitcoin holdings. 

That gap between price and fundamentals shows up clearly in the Zen Ratings. MSTR earns a D (Sell), with F grades for both Momentum and Sentiment, a D for AI, and no component grading higher than a C. That combination suggests the latest pop is running against a weak underlying trend and analyst confidence that keeps eroding, with nothing elsewhere on the card to lean on. 

🔥 HOT: Discount retailer Ross Stores (ROST) is doing exactly what investors want to see: beating expectations, raising guidance, and giving Wall Street more reason to believe the momentum can continue. Its latest results topped estimates and management lifted its full-year profit outlook, helping send shares sharply higher as of writing. Earnings have also grown at a double-digit pace over the past year, while analysts still see more room to run, with the average target implying roughly 10% upside and the most bullish forecast closer to 30%.

The Zen Ratings support the bull case with a B (Buy), including an A in Financials and B grades for Growth and AI. That combination points to a financially strong retailer that is still growing at a healthy clip, with multiple quantitative signals suggesting the recent strength has real fundamental support behind it.

🥶 NOT:  Newly public space giant SpaceX (SPCX) still has no shortage of hype, but the stock has struggled to live up to it. Shares are roughly 40% below their post-IPO high as of writing, even as Wall Street continues to pencil in huge long-term growth. Analysts remain bullish, with the average price target implying around 70% upside, but that optimism comes with a catch: expectations are already enormous, leaving little room for execution misses.

The Zen Ratings take a much more cautious view. SPCX earns a C (Hold), with C grades in Value, Growth, Momentum, Safety, and Financials, while Sentiment is the lone B. That tells a pretty clear story: investors still want to believe in the upside, but the valuation, fundamentals, and price action have not caught up to the narrative. For now, this looks more like a stock to watch than one to chase.

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