Hot or Not, Stock Market Edition: 08/26/2025

Happy Tuesday. Let’s talk about stocks making noteworthy moves: 

• HOT: Zoom Communications (ZM) surprises investors (in a good way); unpacking Ubiquiti’s ( UI) big gain last week
• NOT: Streak freeze: Is Duolingo (DUOL) in trouble? CSX Corporation (CSX) drops following partnership news

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

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🔥 HOT: Ubiquiti (NYSE: UI) has been killing it this year. The stock gained 30.6% on Friday to close at a new all-time high and bring its YTD return to an impressive 51.4%. The company’s second-quarter earnings report showed steadily growing revenue and a quarterly EPS of $3.54, almost 60% higher than Wall Street’s consensus estimate. Our analysis reveals that the company’s Financials are strong (A rating), and its Momentum and Sentiment are solid (B ratings). We give UI a B Zen Rating and a Buy recommendation and see a lot more upside for the company in the near term.

🥶 NOT: Shares of railroad company CSX Corporation (NASDAQ: CSX) dropped by 3.6% after it announced on Friday that it would be partnering with Warren Buffett’s BNSF to provide “seamless, efficient, coast-to-coast solutions.” The speculation is that CSX declined because investors are worried about how CSX will be able to compete with Union Pacific and Norfolk Southern if those companies are allowed to merge. Some analysts expected CSX and BNSF to merge in response, but this partnership seems to indicate that a merger won’t happen any time soon. Our research gives CSX an F rating in Growth, which is more than enough to warrant a D Zen Rating and a Sell recommendation. To put it bluntly: a partnership with BNSF is not enough to quell our concerns over the company’s future.

🔥 HOT: Zoom Communications (NASDAQ: ZM) surprised everyone on Friday by posting a quarterly profit of $358 million, 63% higher than the same quarter of last year. Investors were impressed by the company’s outperformance and bullish on the company’s plans to include AI tools in its suite of meeting software going forward. We are similarly impressed by ZM’s quarterly performance and guidance, and give the stock a B Zen Rating. We’re somewhat concerned about the C rating ZM gets in Momentum, but we feel that its A rating in Financials and B ratings in Safety and Value are more than enough to warrant a Buy recommendation.

🥶 NOT: After a brief gain after its earnings report on August 7th, Duolingo (NASDAQ: DUOL) has continued its decline, losing 4.0% on Friday to close lower than it was before its earnings boost. The stock continues to suffer backlash from its proposed plan to replace swaths of its translators and other workers with AI. In a telling sign of the state of things inside the company, Duolingo’s Chief Business Officer, Engineering Officer, Financial Officer, and General Counsel have sold nearly $2 million worth of shares, according to a recent SEC filing. We give DUOL a C Zen Rating and a Hold recommendation, but we’ll be keeping a close eye on it over the next few months.

What to Do Next?

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