It’s Thursday morning. Here are the stock stories we’re following today:
P.S. For more stocks making moves, check out our Zen Ratings Upgrades & Downgrades screener.
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🥶 NOT: BlackRock, Inc. (BLK) is up 23% in the past year, owing in part to a rush of inflows to its Bitcoin ETF, but don’t let crypto euphoria blind you to the tepid fundamentals. The stock earns a mere C (Hold) rating from our Zen Ratings system, further weighted down by an Industry Rating (Asset Management) of D, where it’s ranked 51 out of 84 stocks (see the full list here). Looking at the Component Grades that shape the overall rating, it earns middling Cs in every single category — including from our AI component, which is specifically trained to sniff out investments with market-beating potential. Judging by the unimpressive Zen Rating and dull value metrics, BLK lands solidly in Hold territory — there’s no compelling reason to chase BlackRock at these levels.
🔥 HOT: Amazon.com, Inc. (AMZN) is down 6% in the past month … But in the scheme of things, this could be a great time to snap up shares at a bargain. Why? Consider this: 1) It just got a price target lift and reaffirmed Buy rating from Goldman Sachs 2) It’s on an expansion spree, with the company snapping up a $97 million mega warehouse to supercharge its US distribution network 3) It’s making an aggressive push into Latin America with its recent Rappi investment. Perhaps more important, our Zen Ratings system backs up these catalysts with data-based due diligence. AMZN currently earns an overall B (Buy) rating, with an extra-special Component Grade of B (above average) for Sentiment, signaling the Smart Money crowd is keen on the stock. Financials are similarly solid. While other Component Grades like Momentum may be ordinary right now, the next wave of innovation and expansion could be ready to roll.
🥶 NOT: Wells Fargo & Company (WFC) is facing controversy—again. Not only is the company facing shareholder uproar over the dual CEO-chair structure, but customers are teed off about a $15 monthly fee infuriating customers. When you add the fact that the macro picture remains dicey for Diversified Banks, which have an F rating from our Zen Ratings system, there’s reason to be cautious. WFC itself earns a C (Hold) rating from our quant ratings system — better than some of its fellow banking stocks, but it’s not a rating that inspires a ton of confidence. Digging into the Component Grades to see what’s dragging it down, you’ll find a D for Growth. The only positive spin is a B in Sentiment, but that's hardly enough when Financials, Momentum, and Safety all settle for a bland C. With mounting customer and governance headaches and weak fundamentals, this big bank simply isn’t delivering on value or vision.
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