Happy Thursday. We took the market’s temperature and here’s what we found:
P.S. For more stocks making moves, check out our Zen Ratings Upgrades & Downgrades screener.
A note from our sponsors...
Here's the Best Day to Buy Stocks Did you know the S&P 500 has a 100% history of soaring, beginning on one particular day every fall? We call this the "Green Day phenomenon." It works on 5,000 stocks. For example, Nvidia has a 100% history of soaring beginning on one particular day every single year. Click here to see the green days for 7 major stocks today.🔥 HOT: Eli Lilly (LLY) is getting noticed—again. Or perhaps—still. Even after gaining 8% in the past month, this top-rated stock in the General Drug Manufacturer industry (Industry rating: A) keeps getting upgraded. Positive long-term trial results for its Omvoh treatment and momentum for Lilly's GLP-1 drugs have electrified the Street—the stock has gotten 2 Strong Buy ratings in the past week, with 1-year price targets suggesting as much as 29% upside in the coming year. Meanwhile, its Zen Rating of B (Buy) is backed by a strong roster of Component Grades, including Bs in Value, Growth, Financials, and from our proprietary AI factor. The bottom line? This could be just the prescription your portfolio is looking for if steady performance is a key objective.
🥶 NOT: HDFC Bank (HDB) is up a respectable 6% in the past month—so why did our Zen Ratings system just downgrade the stock to a C (Hold) rating? Let’s take a look. First off, it’s in a suffering sector—Banks currently earn a D according to our Industry Rating (here’s how it works), and HDB bank is middling within the industry—190 out of 286 stocks. Second, it is part of a bigger downtrend for Asian stocks, which recently tumbled amid last week’s brief pause from recent rallies. HDB has less-than-stellar fundamentals—straight Cs for every single Component Grade including Growth, Momentum, and more. The one exception? A D for Value. In the scheme of things, Hold seems like a best-case scenario for now.
🔥 HOT: Micron Technology (MU): If you missed our story on MU the other day, let this Hot Stock feature be your impetus to keep it on watch. The company just delivered blowout earnings—and an upgrade to an A (Strong Buy) rating in our Zen Ratings system. What's the secret sauce? For one, all of the things we said in the story linked above. Second, it has strong analyst support and 1-year price targets that suggest the stock could go up 30% or more in the coming year. Micron’s performance has lifted it to #2 in the semiconductor industry, with the Component Grades revealing solid Bs for Value, Momentum, Sentiment, and Financials. By all accounts, this looks like a simple, straightforward win. Sometimes, looks are not deceiving.
🥶 NOT: JPMorgan Chase (JPM) just delivered a strong earnings report. But it also recently got downgraded to a D (Sell) in our Zen Ratings system. What’s the deal? Looking into the Component Grades for clues, you'll find that despite strong Bs in Momentum and Sentiment, Growth looks ugly, with an F rating. Value is similarly dismal with a D rating. Additionally, the industry has an overall D rating (find out why industry rank matters here). Even bulls admit a “heightened degree of uncertainty” is clouding the outlook. For now, caution is the name of the game.
What to Do Next?
Want to get in touch? Email us at news@wallstreetzen.com.