These 2 Stocks Are On Fire

Happy Thursday. Here are the big moves happening RN according to our Zen Ratings system:

• Hot: Electrical equipment maker Vertiv Holdings (VRT) is catching fire; engineering and construction player Comfort Systems USA (FIX) looks poised to outperform
• Not: Oil and gas equipment provider NOV (NOV) is hitting a rough patch; cybersecurity heavyweight Palo Alto Networks (PANW) is losing steam

P.S. Speaking of hot, don’t miss our list of 4 beaten-down stocks to buy now

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🔥 HOT: Electrical equipment maker Vertiv Holdings (VRT) is catching fire, up nearly 40% in the past month. What's behind the move? 1) The move is largely driven by strong momentum in data center infrastructure demand — a market Vertiv dominates with its cooling and power management solutions. 2) Technical indicators point to continued strength, with the stock trading well above key moving averages and showing robust relative strength. 3) The stock holds a Zen Rating of A or Strong Buy, meaning it currently ranks in the top 5% of stocks based on a 115-factor review. Looking at the Component Grades, it shines with A Grades for Financials and Momentum, and B Grades for Growth and Sentiment. Bottom line? Vertiv appears positioned to ride the AI infrastructure wave, and the combination of stellar ratings and powerful momentum makes this one to watch.

🥶 NOT:  Oil and gas equipment provider NOV (NOV) may be hitting a rough patch in the near future, despite recent share price strength. Here’s why: 1) The company delivered weak Q4 performance amid declining drilling activity and a cautious M&A strategy, with analysts questioning whether the current valuation reflects true worth. Recent commentary highlights concerns about weakening offshore wind prospects and the impact of increased tariffs on equipment costs. 2) While NOV announced a 20% increase in its quarterly dividend to $0.09 per share — an attempt to reward shareholders — the move comes against a backdrop of deteriorating fundamentals in the energy equipment sector. 3) The stock was just downgraded to a Zen Rating of C (Hold). Looking at the Component Grades for clues about this downgrade, it struggles with an F Grade for Sentiment and middling C Grades for Growth and Value, though it does benefit from an A Grade for Safety. The bottom line? The Hold rating seems appropriate. The dividend bump is nice, but with declining drilling activity and weak near-term prospects, there are likely better places to deploy capital until the outlook improves.

🔥 HOT:  Engineering and construction player Comfort Systems USA (FIX) looks poised to outperform after record fourth-quarter results showed revenue jumping 42% with a massive $12 billion project backlog. The company just reported record earnings and significantly expanded its exposure to technology and data center projects — exactly where demand is exploding right now. Following the results, several top-rated analysts raised their forecasts, citing the strength in modular construction capacity and tech customer demand. True, multiple insiders recently sold shares after the strong results, which might raise eyebrows, but the underlying business momentum appears undeniable. The stock holds a Zen Rating of B (Buy), placing it in the top 20% of stocks based on a 115-factor review. Component Grade-wise, it shines with A Grades for Financials, Momentum, and Sentiment. Despite a powerful run already over the past year or so, Comfort Systems appears to have significant runway ahead.

🥶 NOT:  Cybersecurity heavyweight Palo Alto Networks (PANW) is losing steam — the stock has been in a powerful downtrend for months, and is down over 10% in the past week alone. Why? 1) The company missed Q3 earnings-per-share estimates, with organic growth beginning to normalize and the miss driven partly by share dilution. Recent news shows competitive pressure intensifying as AI-powered security tools from players like Anthropic's Claude threaten to disrupt traditional cybersecurity business models — sending PANW and peers tumbling. 2) The stock is sitting well below all major moving averages with weak technical momentum. While Palo Alto is making strategic bets on AI security through partnerships with Nvidia and others, near-term sentiment remains decidedly negative. 3) The stock was just downgraded to a Zen Rating of C or Hold. Looking to the Component Grades for clues, it struggles with a D Grade for Momentum and a C Grades for Sentiment and Value, though it does show strength with a B Grade for AI and Financials. The bottom line? Until organic growth reaccelerates and the AI security strategy proves out, this one lands in wait-and-see territory.

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