Hot or Not, Stock Market Edition: 09/02/2025

The holiday’s over, but the market’s bumping. Here’s what’s hot and what’s not today: 

• Hot: Kimball Electronics (KE) keeps the bull charge alive with breakout sentiment; Strattec Security (STRT) surges on sharp financials and market buzz. 
• Not: Despite oil market optimism, things look bearish for Diamondback Energy (FANG); Sigma Lithium (SGML) demonstrates that lithium hype is fading fast. 

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

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🔥 HOT: Kimball Electronics (NASDAQ: KE) may not be a household name, but may we suggest its 55% gains in the past 3 months make it worth watching? This electronics manufacturer is currently enjoying the warm glow of broad optimism in the electronics manufacturing sector, where demand remains strong across multiple end markets the company serves, including automotive, medical, industrial, and public safety end markets. In our Zen Ratings system, it boasts an overall grade of A (Strong Buy). Even within the highest grade tier, KE rises to the top, ranking in the 97th percentile of stocks we track. Its stellar rating is fueled by a near-perfect Component Grade for Sentiment (99th percentile) alongside solid Safety and AI ratings (both B). 

🥶 NOT: While we’ve featured positive commentary on Diamondback Energy (NASDAQ: FANG) during sunnier times for oil stocks, its most recent earnings report revealed a mixed bag. Despite topping analyst estimates on revenue, it fell short on EPS, which missed forecasts by about 6%. The result? The stock slipped 3.6% following the results amid a broader slump in oil prices and a volatile commodity outlook. The bottom line? Be careful. WallStreetZen’s Zen Ratings system assigns FANG a Zen Rating of F (Strong Sell); it ranks in the bottom 5th percentile of stocks we track, largely due to weak growth and momentum.

🔥 HOT: People love their cars — a fact that’s currently serving Strattec Security Corporation (NASDQ: STRT) and the auto parts industry very well right now (the industry is rated A, and STRT is a top-rated stock within it). Strattec is a maker of automotive locks, keys, and vehicle security systems that recently saw its stock jump approximately 18% recently, reflecting upbeat sentiment following robust earnings. Revenue rose about 6% to $152 million, EPS beat expectations at $2.01, and gross margin expanded by 370 basis points to 16.7%. Our quant ratings system agrees it’s one to watch. For one, it has a Zen Rating of A (Strong Buy), putting it in a class of stocks that have historically delivered 32.52% annual gains. It also boasts above-average Component Grades for Value, Sentiment, Financials, and from our powerful AI algorithm (see how our AI works here).

🥶 NOT: In case you hadn’t noticed, the EV battery boom is kind of a bust these days — and lithium producers like Sigma Lithium Corporation (NASDAQ: SGML) continue to underperform. In Q2 2025, production climbed 38% year-over-year, but strategic sales cuts amid volatile lithium prices pushed revenue down 62% to just $21.1 million, while net losses deepened to $18.9 million. The bottom line? Despite low costs, the company’s fundamentals remain weak. WallStreetZen’s Zen Rating brands SGML an F (Strong Sell), with a Safety rating of F and Financials rating of D, cementing our “stay away” stance.

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