Hot or Not, Stock Market Edition: 02/11/2025

What’s sailing and what’s flailing in the market right now?

HOT: Both ESCO Technologies (NYSE: ESE) and Doximity (NYSE: DOCS) stocks surged following better-than-expected earnings reports. 

NOT: Nikola (NASDAQ: NKLA) lost 41.1% on Friday amid reports indicating the company may be in financial trouble; Canopy Growth (NASDAQ: CGC) drops following earnings. 

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🔥 HOT: Medical software company Doximity (NYSE: DOCS) surged for a 35.9% gain on Friday after reporting unexpectedly upbeat earnings. The company’s fourth-quarter EPS came in 33.4% higher than the consensus estimate, and its revenue surpassed expectations by around $16 million. Doximity also raised its full-year outlook for 2025, saying that it expects to continue to grow at its current pace as it expands its digital ad spend. The company’s impressive run over the last year, along with its continued prospects for growth earn it a B Zen Rating and a Buy recommendation.

🥶 NOT: Innovative hydrogen truck maker Nikola (NASDAQ: NKLA) lost 41.1% on Friday, as reports indicate that the company is close to bankruptcy. Nikola has had a rough few years. The company was the target of intense short-selling back in 2020, and its founder, Trevor Milton, was convicted of a federal fraud charge related to misrepresenting its technology during the early prototype stage. Friday’s loss brings Nikola’s loss to 64.6% YTD. We give the company a D Zen Rating and a Sell recommendation.

🔥 HOT: Shares of ESCO Technologies (NYSE: ESE) gained 19.8% on Friday after the company’s fourth-quarter EPS was around 25% higher than analysts anticipated. (Need tips on earnings-season investing? Check out this article.) The aerospace tech company’s fourth-quarter performance outstripped its expectations, with a 13% increase in sales due to organic growth that was mostly due to the company’s aerospace and defense sector. We give ESE a B Zen Rating due to its squeaky clean balance sheets, potential for new organic growth, and momentum. ESE has returned 53% over the last year.

🥶 NOT: After gaining 22.2% on Wednesday and 9.9% on Thursday, cannabis company Canopy Growth (NASDAQ: CGC) lost 27.3% on Friday after it released its fourth-quarter earnings report. The company’s loss-per-share was $0.78, more than double the $0.36 Wall Street expected to see. The main culprit was domestic recreational sales, which were down around 10%. On the bright side, Canopy’s medical and international sales were up slightly, albeit not enough to counteract the disappointing domestic numbers. CGC is now down 28.9% YTD, and we give the stock a D Zen Rating since it’s losing momentum and its financials are ok at best.

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