Happy Thursday morning. Here’s the skinny on the stocks we’re watching today:
P.S. For more stocks making moves, check out our Zen Ratings Upgrades & Downgrades screener.
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🥶 NOT: It appears Visa (V) is struggling to stand out amid sturdy competition in the A-rated Credit Services industry — the stock was recently downgraded to a C (Hold) in our Zen Ratings system. Let’s take a look at why. First, the aforementioned competition. V is only ranked #21 out of the 51 Credit Services stocks we track, indicating plenty of stronger contenders for your portfolio (see the list of stocks here). Second, price-action-wise, the stock hasn’t made any big moves recently — it’s up a fairly flat 1% in the past 3 months. Digging into the Component Grades, V does boast an impressive A for Financials and a B from our AI factor, but otherwise earns straight C’s across the board for key areas including Value and Momentum. In this crowded payments landscape, Visa simply doesn’t stand out as a compelling growth opportunity.
🔥 HOT: If its all-important pipeline is any indication, AstraZeneca (AZN) could be gearing up for gains. The company’s recent clinical trial results for Enhertu, a breast cancer therapy, has sparked serious excitement, not only for its potential impact on early-stage patients but as a potential market share coup from rival Roche’s Kadcyla. Investors responded in kind, and the stock is currently approaching 52-week highs. The Zen Ratings system gives AstraZeneca a B (Buy) grade, ranking it in the 89th percentile of stocks we track. Two areas of strength as expressed through the Component Grades include above-average Bs for Financials (not extremely common for biotechs) and our proprietary AI component (here’s how it works). Plus, The industry itself scores an A among general drug manufacturers, showing AstraZeneca’s winning position isn’t just luck. With strong news flows, a solid financial grade, and that all-important clinical catalyst, AstraZeneca looks set for success.
🥶 NOT: The meat may be fake, but this stock movement isn’t — Beyond Meat (BYND) is up over 350% in the past week. According to WallStreetZen’s “Why Price Moved” feature, the momentum is threefold. Catalysts include 1) short interest 2) Recent inclusion in the Roundhill Meme Stock ETF 3) A recent distribution partnership with Walmart. However, our Zen Ratings system reveals hidden skeletons in this stock’s closet — and BIG reasons to beware. The stock has the worst rating our quant system issues — an F (Strong Sell). Stocks in this class have, on average, lost 8% in the past year. Digging into the Component Grades to see why, you’ll see a pretty dismal scorecard — the stock earns nearly straight Fs, with failing grades for Value, Sentiment, Momentum, and from our proprietary AI factor, and a D for Growth. Perhaps ironically, its highest Component Grade is a C for Safety. But that alone doesn’t change the story. Despite the impressive moves in the past week, BYND does not appear to be a strong contender for continued growth.
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