Hot or Not, Stock Market Edition: 02/20/2025

Something’s always moving in the market — in either direction. Here are our top watches right now: 

HOT: Despite a post-earnings dip, Medtronic (NYSE: MDT) could present an opportunity for investors; Cooper-Standard Holdings (NYSE: CPS) sees solid momentum. 

NOT: Despite great recent performance, there are red flags for Super Micro Computer (NASDAQ: SMCI); Riot Platforms (NASDAQ: RIOT) may have shaky financials. 

📈 Want more stocks like this? Check out the biggest winners and biggest losers on WSZ. 

🔥 HOT: Medical device manufacturer Medtronic (NYSE: MDT) lost 7.3% on Tuesday due to missing its earnings for the previous quarter, but it could be a buying opportunity rather than a red flag. For starters, the revenue and profit miss was due to mismanaging its inventory, not a lack of buyers. While that’s a problem, it’s unlikely to repeat itself, which means the company’s future sales likely will not be affected. MDT is also still up 7.8% YTD since it had an incredibly good start to the year. Tuesday’s dip could be the market overreacting to short-term news. We stand by our B Zen Rating and Buy recommendation.

🥶 NOT: Bitcoin infrastructure company Riot Platforms (NASDAQ: RIOT) has gained 80% over the last six months, but we’re not convinced that it has the staying power to warrant a place in an even remotely risk-averse investor’s portfolio. Riot is banking its future on a potential symmetry between Bitcoin and high-performance computing, which may never come to pass. The company also has a significant stake in Bitcoin, which makes its financials shakier than they otherwise would be. Riot could take off, or it could tank, and we’re not willing to find out the hard way. We give RIOT a Zen Rating of F and a Strong Sell recommendation.

🔥 HOT: Cooper-Standard Holdings (NYSE: CPS) gained 18.7% on Tuesday after its latest earnings report showed a loss of $0.16 per share, significantly less than the $1.79 loss it posted for the same quarter of last year. The stock is now up 17.3% YTD and is in the middle of a trading range with solid momentum to the upside. We like CPS for its current momentum and growth potential and because it typically has lower volatility than similar stocks. We give CPS a B Zen Rating and a Buy recommendation.

🥶 NOT: Super Micro Computer (NASDAQ: SMCI) surged by 16.5% on Tuesday, closing in the green for the third straight day and making it the biggest gainer in the S&P 500 so far this year (up 80.2%). So why is SMCI a not? I’m glad you asked. Tuesday’s gain was based on reports that other server companies — specifically Dell and Hewlett Packard — were close to closing big deals for new hardware as businesses continue to expand their AI infrastructure. Those rumors are unsubstantiated and, even if they’re true, don’t guarantee similar deals for Super Micro. SMCI’s YTD performance is impressive, but we feel better giving it a C Zen Rating and a Hold recommendation until it proves that its recent gains are here to stay.

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