Hot or Not, Stock Market Edition: 12/18/2025

Hello. We have 4 stocks total for you today — 2 with Buy ratings and 2 with Strong Sell ratings. The next step is yours…

• Hot: Comfort Systems USA (FIX) climbs on S&P inclusion; Terex (TEX) rebounds after upgrade
• Not: SoundHound AI (SOUN) slips on sentiment concerns; Dick's Sporting Goods (DKS) downgrades to Sell

P.S. Speaking of hot — check out these 3 undervalued stocks to buy and hold for 2026.

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🔥 HOT: Construction equipment maker Terex (TEX) is up 20% in the past month, and it’s caught the attention of value investors who see opportunity. After a prolonged period of underperformance, Morgan Stanley's recent upgrade to Overweight with a raised price target signals that institutional sentiment may be turning the corner.  While Morgan Stanley warns that the construction slump may continue through 2026 before recovering in 2027, TEX's valuation appears attractive enough that patient investors are willing to look past near-term headwinds. The numbers back up the renewed interest. TEX now earns a B (Buy) Zen Rating, landing in the 94th percentile — driven by exceptional A grades for Value and AI, plus a B for Growth.Bottom line? TEX offers a compelling risk-reward for investors willing to stomach some cyclical volatility in exchange for significant valuation upside as the construction market eventually recovers.

🥶 NOT: Dick's Sporting Goods (DKS) has lost momentum, recently earning a downgrade from C (Hold) to D (Sell) in our Zen Ratings system as concerns about weakening consumer confidence outweigh the retailer's digital strength. While DKS has successfully expanded its digital platforms and same-day delivery capabilities through partnerships with DoorDash and Uber, weaker consumer spending plans threaten to undermine even the best operational execution.

The mixed picture is reflected in DKS's D (Sell) rating on WallStreetZen, placing it in just the 17th percentile of stocks we track. The company earns C grades for Value, Growth, Momentum, and Financials, but an F for Sentiment signals serious investor caution. It ranks 33rd out of 39 companies in the Retail industry (D grade). With consumer confidence weakening and the stock's recent downgrade reflecting deteriorating, most investors would be best off avoiding DKS for now. 

🔥 HOT: Comfort Systems USA (FIX) has delivered a jaw-dropping 1500%+ gain over the past five years. (We’ve alerted it as a Strong Buy before — if you didn’t listen then, take note now!)  But don't let that massive run fool you into thinking the party's over. The company’s expansion into explosive data center markets is adding new fuel to an already hot story, as the stock was ALSO just added to the S&P. It’s already driven a 140% surge in its share price. But is the move over? Possibly not. Our Zen Ratings backs up the stock’s fundamentals — it’s currently rated B (Buy), ranking #6 out of 43 stocks in the Engineering & Construction industry. With standout Component Grades of A for Financials and Bs for Growth, Momentum, and Sentiment, plus its accelerated activity in pharma and life sciences sectors, FIX looks like a rare setup where past performance might actually be prologue.

🥶 NOT: Is the former “$3 AI wonder stock” in trouble? SoundHound AI (SOUN) is down over 20% in the past 3 months despite a broader AI boom lifting many of its tech peers. The voice AI specialist's recent participation in Barclays' Global Technology Conference provided visibility but did little to move the needle on investor sentiment — and the numbers help explain why. SOUN earns an F (Sell) rating on WallStreetZen, ranking in just the 1st percentile of stocks we track (1 is low, btw). The breakdown is rough across the board with its Component Grades: F grades for Value and Sentiment, D grades for Momentum, Safety, and AI, and only a C for Growth. Factor in the fact that the company ranks a dismal 182nd out of 183 companies in the App industry, and it’s not hard to see why investors should be wary.

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