Hot or Not, Stock Market Edition: 10/16/2026

Happy Friday. Here’s what the Zen Ratings are ringing up and returning today:

• Hot: Pharmacy and health insurance giant CVS Health (CVS) has every analyst on board; electronics retailer Best Buy (BBY) is quietly building a new profit engine
• Not: AI data center operator Applied Digital (APLD) can’t fund its own backlog; bitcoin miner turned power platform Hut 8 (HUT) is burning through capital

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🔥 HOT: Consumer electronics retailer Best Buy (BBY) is finding a new profit engine in retail media. Best Buy Ads, its marketplace expansion, and new connected-TV partnerships are helping lift profitability, and management raised its full-year outlook as those higher-margin businesses gained traction. For investors, that creates a fresh earnings catalyst beyond simply selling more electronics.

Shares are up sharply from their 52-week low, still trade below their high, and offer a dividend yield above 4%.

BBY has a Zen Rating of B, a Buy recommendation. The Component Grades suggest stability is the main strength: Safety and Financials earn B grades … That points to a well-financed retailer with relatively predictable earnings, if not necessarily explosive growth. Bottom line: the retail-media push is improving the profit story, making Best Buy more compelling as a steady income-and-recovery play than a high-growth bet.

🥶 NOT: Energy infrastructure and bitcoin miner Hut 8 (HUT) has seen profitability collapse over the past year. Margins have swung deeply negative, projected cash burn has surged, and leverage has climbed sharply. Shares also dropped double digits in the latest crypto-linked selloff. For investors, the problem is that the business is getting weaker just as the market is demanding more proof from speculative infrastructure names.

HUT has a Zen Rating of F, a Strong Sell recommendation. The Component Grades reinforce that concern: Sentiment and Financials both earn F grades, while Value, Safety, and Artificial Intelligence receive D grades. Growth and Momentum are only C. That mix points to weak financial health, poor investor confidence, and a valuation that still looks aggressive despite the pullback. Bottom line: Hut 8 may have an interesting infrastructure angle, but the current numbers suggest investors are still paying too much for a business moving in the wrong direction.

🔥 HOT: Healthcare giant CVS Health (CVS) is starting to show the earnings recovery investors have been waiting for. Aetna’s Medicare ratings remain a headwind, but core trends are improving and analysts expect EPS to more than double next year. For investors, the appeal is that the stock still trades well below its high and at a much lower multiple than its industry.

CVS has a Zen Rating of A, a Strong Buy recommendation. The Component Grades add useful context: Artificial Intelligence earns an A, while Growth, Sentiment, and Safety receive B grades. That suggests improving earnings, stronger analyst conviction, and a relatively stable setup despite the recent insurance concerns. Bottom line: CVS still has work to do at Aetna, but the earnings rebound and discounted valuation give investors a credible recovery case. 

Note: For more stocks poised to surge, check this out.

🥶 NOT: AI data center developer Applied Digital (APLD) has a huge contracted revenue pipeline, but the latest quarter exposed the cost of trying to build it. Earnings missed as expenses climbed, price targets were cut, and projected cash burn far exceeds available cash. For investors, that makes the story increasingly dependent on financing rather than execution alone.

Shares are down more than 50% from their 52-week high, but the financial picture suggests that decline may not be enough.

APLD has a Zen Rating of F, a Strong Sell recommendation. The Component Grades show where the pressure is concentrated: Sentiment, Safety, and Financials all earn F grades, while Value, Momentum, and Artificial Intelligence receive D grades. Growth is the only C. That points to weak financial health, fading confidence, and poor price action despite the ambitious backlog. Bottom line: the AI demand is real, but Applied Digital still has to prove it can fund the buildout without overwhelming shareholders.

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