Happy Sunday! We’ve put together an all-star list of high-upside-potential stocks to watch this week, including:
- A company that just beat and raised guidance (again)
- A “hidden in plain sight” company quietly gaining data center market share
- A company selling dead weight and lifting its entire business
- And more.
Let’s go…
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5 Stocks to Watch: Week of August 31, 2026 |
1. Generac Holdings (NYSE: GNRC)
Our latest Stock of the Week! This company makes backup power systems, and AI data centers are becoming a major new growth engine. The company just landed a second hyperscale customer and tripled its U.S. data center capacity to $3.75 billion as demand for large-scale backup generators surges.
Zen Rating: A (Strong Buy) — see full analysis
Recent Price: $197.07 — get current quote
Max 1-year forecast: $340.00
Why we're watching:
- GNRC has strong, bullish coverage among the analysts we track, with 11 Strong Buy, 1 Buy, and 2 Hold recommendations. See all recommendations here
- For example, UBS researcher Jon Windham (a top 21% rated analyst) maintains his Strong Buy rating with a price target suggesting the stock could see greater than 60% upside in the coming year.
- Separately, Stifel Nicolaus researcher Stephen Gengaro (a top 4% rated analyst) maintained his Strong Buy with a more modest but still weighty price target that suggests the stock could see greater than 30% upside above current levels.
- It’s also our latest Stock of the Week. In his recent commentary, Zen Investor Editor-in-Chief Steve Reitmeister highlighted the dip-buy potential for this increasingly vital service provider for the AI data center buildout. See his full commentary here.
- Q2 earnings demonstrated execution strength: EPS of $2.91 beat estimates by 76.4% with 76.4% year-over-year growth, while revenue of $1.17B missed expectations by 0.37% with 11% YoY growth.
- Industry ranking context: GNRC is currently the #2 highest-rated stock in the Specialty Industrial Machinery industry, which has an Industry Rating of B.
- Zen Ratings highlights: GNRC earns an overall A rating, which amounts to a Strong Buy recommendation. Stocks with this rating represent the elite top 5% of all 4,600+ stocks tracked based on a rigorous 115-factor fundamental review.
- Component Grades: GNRC shines with an A for Growth, reflecting the company's impressive earnings expansion and data center market momentum, while maintaining solid Bs for Financials, Safety, and Sentiment, a combination that positions it well for continued outperformance. See all 7 Component Grades here
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2. Viavi Solutions (NASDAQ: VIAV)
Viavi Solutions makes the testing tools that keep high-speed communications networks running smoothly. Its growth opportunity is AI data centers, where faster optical connections are driving demand for more advanced network testing equipment.
Zen Rating: A (Strong Buy) — see full analysis
Recent Price: $38.00 — get current quote
Max 1-year forecast: $70.00
Why we're watching:
- VIAV has strong, bullish coverage among the analysts we track, with 4 Strong Buy, 1 Buy, and 1 Hold recommendations. See all recommendations here
- For example, Rosenblatt researcher Mike Genovese (a top 1% rated analyst) recently maintained his Strong Buy rating with price target representing greater than 80% implied upside in the coming year.
- Separately, Stifel Nicolaus researcher Ruben Roy (a top 1% rated analyst) maintained his Strong Buy with a price target suggesting the stock could see nearly 70% upside.
- Three additional top-rated analysts are also on board, all maintaining bullish outlooks on the optical testing market's expansion.
- Industry ranking context: VIAV is currently the #6 highest-rated stock in the Communication Equipment industry, which has an Industry Rating of B.
- Zen Ratings highlights: VIAV earns an overall A rating, which amounts to a Strong Buy recommendation. Stocks with this rating represent the elite top 5% of all 4,600+ stocks tracked based on a rigorous 115-factor fundamental review.
- Component Grades: VIAV excels for Growth with an A grade, reflecting strong revenue expansion driven by AI infrastructure demand, while maintaining solid Bs for Momentum, Sentiment, and Financials, a powerful combination for continued upside. See all 7 Component Grades here
3. Want the other 3 stocks? Keep reading here
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Note: This article does not provide investment advice. The stocks mentioned should not be taken as recommendations. Your investments are solely your decisions.
This newsletter was lovingly put together by Jessie Moore and Mijuško Šibalić. Writers of this newsletter or other members of the WSZ team may hold positions in some of the stocks mentioned.
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