Hot or Not, Stock Market Edition: 09/29/2026

Happy Tuesday. Here's what the Zen Ratings are delivering and returning to sender today:

• Hot: Truck leasing and logistics operator Ryder System (R) is hauling a Strong Buy; pharmaceutical distributor Cardinal Health (CAH) has analysts lining up behind it
• Not: AI drug discovery player Recursion Pharmaceuticals (RXRX) can't find a formula that works; voice AI company SoundHound AI (SOUN) isn't being heard

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🔥 HOT: Ryder System (R) is heading into its October earnings report with real momentum. The company beat earnings and revenue last quarter, raised results year over year, and analysts now expect EPS to grow more than 20% over the next twelve months. Ryder also increased its dividend this year. For investors, the setup is straightforward: earnings are accelerating, income is rising, and yet the stock still trades roughly 15% below its 52-week high.

Right now, R has a Zen Rating of A, a Strong Buy recommendation. Looking at the underlying Component Grades, it shows broad strength: Value, Safety, Financials, and Artificial Intelligence all earn B grades, while Growth, Momentum, and Sentiment sit at C. That mix points to a financially solid, reasonably priced business with relatively low risk, even if the market has not fully embraced the growth story yet. Bottom line: Ryder has a near-term earnings catalyst, improving profits, and a valuation that still leaves room if results keep moving in the right direction.

🥶 NOT: Recursion Pharmaceuticals (RXRX) keeps landing AI drug-discovery partnerships, but the latest quarter gave investors a much less exciting reality check. Earnings missed, revenue declined year over year, losses remain enormous, and projected cash burn is now roughly equal to the company’s available cash. Insiders, including the CEO and CFO, have also been consistent sellers.

Shares are down nearly 50% from their 52-week high and almost 90% from their 2021 listing price, but our data suggests the selloff has not made the stock attractive yet.

RXRX has a Zen Rating of F, a Strong Sell recommendation. Looking at the Component Grades, there’s a lot to suggest caution … Value, Sentiment, Safety, Financials, and Artificial Intelligence all earn D grades, while only Growth and Momentum reach C. That mix says the problems are broad: the stock is still expensive relative to the business, investor confidence is weak, financial risk is elevated, and the AI story has yet to translate into stronger economics. Bottom line: Recursion’s technology may be compelling, but investors are still being asked to fund the story before the business proves it can support itself.

🔥 HOT: Cardinal Health (CAH) is getting a fresh growth engine from specialty care. Management is targeting low-to-mid teens EPS growth as it expands deeper into specialty services and at-home care, while analysts expect earnings to accelerate sharply over the next year. That matters because Cardinal has traditionally been a slow-growing distributor. If specialty care keeps lifting margins, investors could be looking at a structurally better business than the one the market was used to pricing. Shares have already climbed strongly but remain roughly 15% below their 52-week high, leaving some room if the earnings story continues to improve. 

CAH has a Zen Rating of A, a Strong Buy recommendation. The Component Grades reveal several key strengths: Namely Growth and Safety both earn above-average B grades. Typically, these two components struggle to coexist, so it’s a rare find indeed to find a stock that scores highly for both. The bottom line here is that specialty care is giving Cardinal a credible catalyst for faster profit growth, and investors may still have room to benefit if that shift continues.

🥶 NOT: SoundHound AI (SOUN) keeps rolling out new products and recently completed its LivePerson acquisition, but investors are still waiting for those moves to show up in the numbers. Shares have fallen about 15% over the past month and more than 70% from their 52-week high, while losses remain heavy and projected cash burn exceeds current cash. Senior insiders have also been selling, suggesting that those in the know are not confident about the stock’s near-term trajectory.

The Zen Ratings back up the bearish case. SOUN has a Zen Rating of F, a Strong Sell recommendation. Its Component Grades for Value and Momentum both clock in at disappointing Fs, while Financials and Artificial Intelligence receive D grades. That combination says investors are still paying a high price for a business with weak financials and a stock trend moving firmly in the wrong direction. Growth, Sentiment, and Safety sit at C, but there is not enough strength there to offset the rest. Bottom line: the AI product story remains interesting, but until SoundHound shows that growth can translate into better cash flow and profitability, the falling share price may be warning investors rather than offering them a bargain.

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