Hot or Not, Stock Market Edition: 04/25/2025

Is the market rallying or not? There’s a little of column A and column B below: 

• HOT:  Nutanix (NTNX) rides the overall market rally; Flex (FLEX), well, flexes on international news 
• NOT: Why Watsco (WSO) didn’t rally with the rest of the market; Enphase Energy (ENPH) misses earnings expectations.

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

🔥 HOT: Electronics manufacturer Flex (NASDAQ: FLEX) gained 5.4% on Wednesday as global tensions eased somewhat. President Trump indicated that he is willing to lower the tariffs on China, a sign that the president may be softening his overall stance on tariffs. Flex is a Singapore-based company and the third-largest electronics manufacturer in the world, so its profits and growth potential hinge on relatively unencumbered global trade. We give the stock B ratings in Value, Sentiment, and Safety, and expect slow but steady growth in the mid and long-term. Overall, we give FLEX a B Zen Rating and a But recommendation.

🥶 NOT: Solar panel equipment manufacturer Enphase Energy (NASDAQ: ENPH) lost 15.6% on Wednesday after missing its earnings projections. Despite a 94% increase in EPS and a 35% increase in revenue, the company’s performance lagged behind Wall Street’s expectations. We won’t sugarcoat this for you: the road ahead is rough for Enphase. The entire solar industry is facing headwinds from the ongoing trade war but also from the threat of decreased government incentives for buying solar panels in the U.S. We give ENPH F ratings in Momentum and Sentiment, but B ratings in Growth and Financials. The company is internally strong, but the deck is stacked against it. We give ENPH a C Zen Rating and a Hold recommendation for now.

🔥 HOT: Nutanix (NASDAQ: NTNX) rode the overall market rally to a 5.8% gain on Wednesday. Like most of the Nasdaq stocks this year, NTNX has had its ups and downs. The stock has traded in a relatively balanced range between $80 and $55, closing out Wednesday at $63.27 (a 2.7% YTD gain). Our research indicates that the stock has the potential for significant upside through the remainder of 2025, earning NTNX an A Zen Rating and a Strong Buy recommendation. Our component analysis gives the stock an A rating in Growth and B ratings in Sentiment and Financials.

🥶 NOT: HVAC and refrigeration company Watsco (NYSE: WSO) was not invited to the market rally party, losing 11.3% after missing its first-quarter earnings projections. Watsco’s EPS came in almost 15% lower than expected, registering at $1.93 compared to a consensus estimate of around $2.23. Its revenue numbers were also disappointing, falling $123 million short of Wall Street’s $1.65 billion estimate. Our analysis gives WSO a D score in Value but an A in Financials, making it a fine stock to hold if you already have an open position. We give WSO a Hold recommendation and a Zen Rating of C.

What to Do Next?

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