Hot or Not, Stock Market Edition: 04/01/2025

Athleisurewear stumbles, while infrastructure soars. Here’s what’s hot and what’s not right now: 

• HOT: W.R. Berkley (NYSE: WRB) surges on news of a big deal; Argan, Inc (NYSE: AGX) gains after smashing earnings expectations 
• NOT: Lululemon Athletica’s (NASDAQ: LULU) drops on weak guidance; AAR Corp (NYSE: AIR) is having a rocky year

P.S. For more stocks making moves, check out our new Zen Ratings Upgrades & Downgrades screener.

🔥 HOT: W.R. Berkley (NYSE: WRB) was the big winner in the S&P 500 on Friday, gaining 7.5% to close up 20.9% YTD. WRB has been on a roll this year, but Friday’s jump was fueled by news that Mitsui Sumitomo Insurance agreed to a deal to purchase 15% of WRB through a combination of market purchases and third-party transactions with shareholders. Our analysis gives WRB B ratings for both Momentum and Sentiment, and we see continued growth for the stock throughout 2025. We give WRB an overall Zen Rating of B and a buy recommendation.

🥶 NOT: Shares of aircraft component service company AAR Corp (NYSE: AIR) fell by 16.4% on Friday after the company failed to meet expectations for its fiscal third-quarter revenue. The company’s latest SEC filing showed a revenue of $678.2 million, about $21 million lower than the $699 million analysts projected. AAR has had a very swingy year and has lost 7.2% since January. However, the stock is up more than 200% over the last five years and has solid sentiment indicators and financials. We give AAR a C Zen Rating and a Hold recommendation.

🔥 HOT: Energy infrastructure and engineering company Argan, Inc (NYSE: AGX) gained 19.8% on Friday after smashing its predicted EPS and revenue for the fourth quarter of 2024. The company’s fourth-quarter revenue was $232.5 million, a significant uptick from the $164.6 million it pulled in during the fourth quarter of 2023 and 17% higher than Wall Street’s consensus estimate. Argan’s stock is down 0.4% YTD, but with the broader market downturn, we view its current price as an attractive entry. We give AGX a B Zen Rating and a Buy recommendation. Additionally, AGX is in an A-rated industry, which bodes well for the stock.

🥶 NOT: Lululemon Athletica’s (NASDAQ: LULU) stock dropped by 14.2% on Friday after issuing weaker-than-expected guidance for 2025 during its earnings call on Thursday. Lululemon’s fourth-quarter EPS and revenue were both solid and in line with analysts’ expectations, but its full-year outlook was considerably lower than Wall Street expected. The company expects to see between $11.15 billion and $11.3 billion in revenue through 2025, which falls slightly short of the lower limit estimate of between $11.31 billion and $15.40 billion. With all of that said, we’re lukewarm at worst on LULU. We give LULU a Zen Rating of C and a Hold recommendation, recognizing the company’s strong financials as a solid long-term foundation despite its lowball revenue estimates for 2025.

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