Hot or Not, Stock Market Edition: 10/23/2026

Happy Friday. Here’s what the Zen Ratings are underwriting and writing off today:

• Hot: Insurance heavyweight Allstate (ALL) trades under 5 times earnings with dual A grades; compliance software maker Workiva (WK) just swung to profitability
• Not: Alaska Air Group (ALK) is dead last in its industry; air taxi developer Archer Aviation (ACHR) sits at its 52-week low

P.S. For more stocks making moves, check out our Zen Ratings Upgrades & Downgrades screener.

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🔥 HOT: Property and casualty insurer Allstate (ALL) is turning higher insurance pricing into a serious earnings rebound. Profit margins have more than doubled, cash flow is strong, and the company is expanding its data business through Arity’s acquisition of Inrix. For investors, the striking part is the valuation: Shares still trade at under 5x earnings despite the improved profitability (That’s a good thing).

ALL has a Zen Rating of A, a Strong Buy recommendation. The Component Grades help explain why the setup still looks attractive: Sentiment and Artificial Intelligence both earn A grades, while Value gets a B. That points to strong analyst and market support alongside a stock that still looks inexpensive. Bottom line: Allstate has improving margins, solid cash flow, and a valuation that has not caught up with the earnings recovery.

🥶 NOT: Alaska Air Group (ALK), parent of Alaska Airlines and Hawaiian, is getting squeezed by rising fuel costs just as it works through a major integration. The company swung to a quarterly loss and guided to an even bigger loss ahead, while leverage remains high. For investors, that means the recovery story now has to overcome both weaker margins and a tougher cost backdrop.

Shares are down more than 40% from their 52-week high and sit near the low.

ALK has a Zen Rating of F, a Strong Sell recommendation. The Component Grades show the pressure is still building: Sentiment earns an F, while Growth, Momentum, and Financials receive D grades. That says expectations are still falling, the stock trend is weak, and the balance sheet offers little cushion. Bottom line: the Hawaiian deal may pay off eventually, but fuel costs and deteriorating sentiment make Alaska a difficult turnaround to own right now.

🔥 HOT: Compliance software company Workiva (WK) just crossed an important milestone: It turned profitable. The latest quarter beat on earnings and revenue, margins improved sharply, and management is pushing deeper into AI-powered reporting tools. For investors, that gives the growth story a much stronger foundation because the company is no longer relying on revenue expansion alone.

Analysts expect EPS to more than quadruple over the next year, while shares still sit below their 52-week high.

WK has a Zen Rating of A, a Strong Buy recommendation. The Component Grades highlight what is driving the setup: Growth earns an A, while Sentiment and Financials receive B grades. That points to accelerating earnings backed by improving financial quality and analyst confidence. Bottom line: Workiva has a fresh profitability catalyst and exceptional earnings growth ahead, though the premium valuation means execution still matters.

Note: For more AI stocks poised to surge, watch this right now.

🥶 NOT: Electric air taxi developer Archer Aviation (ACHR) just completed high-profile eVTOL flights over San Francisco Bay, but investors barely rewarded it. The reason is simple: revenue is still tiny compared with losses, projected cash burn is heavy, and insiders have been consistent sellers. For investors, the technology may be exciting, but the business remains far from proving itself.

Shares are down roughly two-thirds from their 52-week high and sit near the low.

ACHR has a Zen Rating of F, a Strong Sell recommendation. The Component Grades reinforce the concern: Value and Momentum both earn F grades, while Financials and Artificial Intelligence receive D grades. That says the stock is expensive relative to the business, the price trend is weak, and the financial picture remains fragile. Bottom line: the flights may be historic, but Archer still needs commercial revenue before the investment case catches up with the technology.

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