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

The market is topsy-turvy on tariff news. Here’s what’s hot (and what’s not) right now:  

• HOT: BK Technologies (NYSE: BKTI) enjoys an extended post-earnings rally; Amentum (NYSE: AMTM) could capitalize on tariff-fueled price increases. 
• NOT: Lucid Group (NASDAQ: LCID) has a tough time in a volatile market; CECO Environmental Corp (NASDAQ: CECO) drops on insider news

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

🔥 HOT: Another U.S.-based company that did well on Wednesday is Amentum (NYSE: AMTM), an engineering and technology company located in Virginia. AMTM gained 10.3% by Wednesday’s close, a gain we see as the start of its recovery. AMTM is down 9.6% YTD, but we view its current price as a buying opportunity due to the company’s positioning to capitalize on increased prices from new tariffs on its overseas competitors. We give AMTM a B Zen rating and a Buy recommendation.

🥶 NOT: EV maker Lucid Group (NASDAQ: LCID) lost 5.1% on Wednesday, bringing its YTD drop to 20.8%. The company’s financials and current value are poor, to be frank, and its elevated volatility makes it an even riskier play than other EV stocks. The company’s deliveries are up in the first quarter of 2025, and it’s planning on raising capital, but its unstable foundation, combined with macroeconomic uncertainty surrounding tariffs and EV incentives, make it a tough stock to recommend at this point. We give LCID a D Zen Rating and a Sell recommendation.

🔥 HOT: American wireless communication product maker BK Technologies (NYSE: BKTI) gained 12.1% on Wednesday, extending its post-earnings rally to a staggering 51.6% since March 26th. BKTI’s EPS for the fourth quarter of 2024 shattered Wall Street projections, coming in 74.3% higher than the consensus estimate. The company could also be one of the big benefactors of President Trump’s latest tariffs since the company is based in Florida. We give BKTI a Zen Rating of A and a Strong Buy recommendation. Our component analysis gives the stock A ratings in Growth, Momentum, Sentiment, and Financials. The only thing to be aware of is that volatility has been up lately, but that’s unsurprising given its current massive bull run.

🥶 NOT: Investors were spooked on Wednesday after an SEC filing showed that the Senior Vice President and CEO of CECO Environmental Corp (NASDAQ: CECO) sold more than $500,000 worth of shares, representing about half of his position in the company. CECO is down 29.4% YTD and 5.9% year-over-year, and insiders selling chunks of their positions raises our eyebrows. Our research gives the company a B rating for Growth but Cs for all other components, leading to an overall Zen Rating of C and a Hold recommendation. CECO’s current price could represent a good value for the stock, but there’s too much uncertainty to recommend buying it.

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