Hot or Not, Stock Market Edition: 02/14/2025

Some stocks are feeling the love this Valentine’s Day … For others, it’s Heartbreak Hotel. 

• HOT: Sezzle (SEZL) continues to sizzle after nearly 700% gains in 2024; investors pile into Palantir Technologies (PLTR). 
• NOT: Kraft Heinz Company (KHC) falls on a lowered 2025 outlook; Frontier Group Holdings (ULCC) loses out on an acquisition bid. 

Keep reading for the full breakdown … And if you love updates like these, check out the biggest winners and biggest losers on WSZ. 

🔥 HOT: In our opinion, Sezzle (NASDAQ: SEZL) is one of the hottest buys in the market right now. The company has returned nearly 700% over the last year but only gained 17.2% YTD. What makes the stock such a good buy is that it’s recently gone through a significant correction, which means that it has some of the characteristics of a strong momentum stock without as much risk as buying in at the top. We give SEZL a Strong Buy recommendation and an A Zen Rating.

🥶 NOT: The Kraft Heinz Company (NASDAQ: KHC) lost 3.3% on Wednesday after it said that it would miss its full-year profit projections. Kraft reported its fourth-quarter earnings on Wednesday, revealing $6.6 billion in profits for the quarter, about 4% lower than the $6.9 billion from the previous year. Kraft’s share price has fallen by 20.4% since one year ago and the fact that the company lowered its full-year outlook for 2025 doesn’t bode well. We cautiously give KHC a C Zen Rating and a Hold recommendation.

🔥 HOT: You’d be hard-pressed to find a better example of a momentum stock than Palantir Technologies (NASDAQ: PLTR). The stock has started the year on fire, gaining over 80% in just the past month. While PLTR has benefited somewhat from continued AI-driven demand, other AI-related stocks — most notably the so-called “magnificent seven” of Nvidia, Microsoft and company — have not fared as well this year. In fact, momentum stocks, on the whole have gained an average of 7.0% on the year, while value stocks have typically lost between 4% and 5%. We believe that PLTR’s momentum will continue to drive interest and growth and give the stock a B Zen Rating.

🥶 NOT: Frontier Airlines’ parent company, Frontier Group Holdings (NASDAQ: ULCC), was turned down in its bid to acquire Spirit Airlines for the third time on Wednesday. ULCC dropped by 4.9% after the news broke, leading some analysts to wonder if the stock can continue the rally it’s been on since early August of last year. It is unclear whether or not ULCC will be able to continue to gain at its current rate, especially if the company sees the acquisition of Spirit as critical for its future business, something that appears to be true given its repeated offers to buy Spirit. We’re currently playing it safe and giving ULCC a C Zen Rating and a Hold recommendation.

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