5 Stocks to Watch: Week of 5/26/2025
Make space on your watchlist! Regal Rexnord (RRX) dipped amid tariff fear, but the outlook is good…Plus, 4 more stocks with excellent near-term potential.
This story originally appeared on WallStreetZen
Happy Memorial Day Weekend! The stock market isn't open tomorrow, but we started your homework so you can be prepared when the market reopens. Here's what we've got:
Regal Rexnord ( RRX ) dipped amid tariff fear, but the outlook is good…
dipped amid tariff fear, but the outlook is good… Vertiv Holdings ( VRT ) offers a different way to gain AI exposure
offers a different way to gain AI exposure The surprising reason why BK Technologies ( BKTI ) got such a high rating from our quant ratings system
got such a high rating from our quant ratings system Why Brinker International ( EAT ) is our Stock of the Week
is our Stock of the Week The real reason why analysts are so bullish on KBR (KBR)
P.S. Did you miss last week's picks? Get 'em here.
5 Stocks to Watch: Week of 5/26/2025
1- Regal Rexnord (NYSE: RRX)
Here's a nuts-and-bolts pick that operates behind the scenes. Regal Rexnord makes industrial powertrains, transmission components, and electric motors — which it then sells either to original equipment manufacturers or end users. The April tariffs caused RRX to dip significantly — it has recovered significantly since, but is still down on a year-to-date (YTD) basis. A recent double beat had made Wall Street confident that the recovery will continue.
Zen Rating: A (Strong Buy) — see full analysis >
Recent Price: $134.57 — get current quote >
Max 1-year forecast: $215.00
Why we're watching:
At present, the entirety of Wall Street's coverage is positive — RRX stock currently has 5 Strong Buy ratings, 2 Buy ratings, and no Hold, Sell, or Strong Sell ratings. See the ratings.
Our ratings system ranks Regal Rexnord as the 5th highest rated stock in the Specialty Industrial Machinery industry, which has an Industry Rating of B.
Barclays equity researcher Julian Mitchell (a top 1% rated analyst) reiterated a Strong Buy rating on RRX shares on May 12, following the company's Q1 2025 earnings call. The analyst also hiked his price target from $155 to $160.
(a top 1% rated analyst) reiterated a Strong Buy rating on RRX shares on May 12, following the company's Q1 2025 earnings call. The analyst also hiked his price target from $155 to $160. Mitchell said their price target hike was part of a post-print review of names in their Industrial Goods sector coverage area.
After reviewing results, the analyst concluded that the risk-reward profile for short-cycle industrial shares focusing on small or medium-caps is "more attractive now than going in."
RRX stock has a Zen Rating of A — and ranks in the top 5% of stocks based on a big-picture assessment of 115 proprietary factors that correlate with above-average returns .
Value or Growth? How about both — Regal Rexnord stock ranks in the top 15% and top 12% in these categories, respectively. (See all 7 Zen Component Grades here >)
2- Brinker International (NYSE: EAT)
Brinker International has managed to thrive in a challenging backdrop for the restaurant business — and while analysts expect that the rate of growth will moderate going forward, the stock ranks quite highly in terms of Growth, and is currently trading at quite the modest P/E.
Zen Rating: A (Strong Buy) — see full analysis >
Recent Price: $154.30 — get current quote >
Max 1-year forecast: $208.00
Why we're watching:
EAT is our Stock of the Week. Our Editor-in-Chief, Steve Reitmeister, added the stock to his exclusive Zen Investor portfolio on May 7 and explained why in a Monday article.
Brinker International is the restaurant company that owns Chili's. Since late 2022, earnings per share (EPS) have risen by 3x — while EAT stock has seen a sixfold increase in price .
. Despite the impressive run, the consensus is that there's still plenty of room to growth — best seen in the $8.78 EPS estimate for this year which is more than twice as good as last year at only $4.10. The pace of growth is expected to moderate into 2026 yet still impressive with a $9.79 outlook.
Brinker International is the top-rated stock in the Restaurant industry.
EAT shares have a Zen Rating of A, and rank in the top 2% of the more than 4,600 equities that our system tracks.
The stock ranks in the top 6% in terms of Financials, the top 7% when it comes to Growth, and the top 20% according to Sentiment .
Lastly, we have Value — the stock is trading at an attractive price-to-earnings (P/E) of just 19.9x, and ranks in the 79th percentile in this category. (See all 7 Zen Component Grades here >)
3- BK Technologies (NYSEMKT: BKTI)
BK is a holding company that designs, manufactures, and markets two-way communications equipment. Its products have found a wide customer base in the public sector among first responders and military organizations. BKTI stock is in a strong uptrend, and once you see its Component Grade ratings, you'll quickly understand why it's included in this list.
Zen Rating: A (Strong Buy) — see full analysis >
Recent Price: $44.72 — get current quote >
Max 1-year forecast: $55.00
Why we're watching:
This micro-cap stock, with a market capitalization of just $168.07 million, has flown under the radar thus far. At present, BKTI has only one analyst rating — a Strong Buy.
That Strong Buy was first issued by Lake Street equity analyst Jaeson Schmidt (a top 23% rated analyst), who reiterated the rating and hiked his 12-month price forecast from $51 to $55 on May 14, after the company's Q1 2025 earnings report was published. Schmidt's revised price target implies a 20.22% upside for BK Technologies shares.
highlighted that the quarter beat on revenue, AEBITDA, and EPS. The analyst told readers that Lake Street remains "impressed by BK Technologies' strong execution against the challenging backdrop."
Looking ahead, Schmidt continued, their firm sees a path for the stock to gain because of the durability of the company's growth trends, the "strong EPS power in its model," and the continued improvement in its balance sheet.
BK Technologies is currently the highest-rated stock in the Communication Equipment industry, which has an Industry Rating of A. Speaking of 'highest-rated'....
BKTI stock has a Zen Rating of A. Stocks of this caliber have provided an average annual return of 32.52% since the early 2000s. Moreover, BK Technologies is currently the top-rated stock according to our rating system — quite literally number 1 among the more than 4,600 stocks that we track.
— quite literally number 1 among the more than 4,600 stocks that we track. Each stock's Zen Rating is a composite of 7 Component Grade ratings — so it will come as little surprise that the highest-rated stock of them all ranks highly in multiple categories. BKTI ranks in the top 1% according to Financials and Sentiment, the top 4% according to Momentum, the top 11% in terms of Value, and the top 17% when it comes to Growth. (See all 7 Zen Component Grades here >)
KBR is a government contractor (the 44th largest one, fun fact) that provides a very expansive suite of services to the public sector — including but not limited to astronaut training, satellite control systems, data analytics, and operational intelligence. The proposed Pentagon budget cuts caused the stock to dip — but Wall Street remains optimistic, and a recent earnings beat suggests that this trust is not unfounded.
Zen Rating: A (Strong Buy) — see full analysis >
Recent Price: $51.46 — get current quote >
Max 1-year forecast: $84.00
Why we're watching:
Analyst coverage of KBR is almost unanimously bullish — the stock currently has 5 Strong Buy ratings and 1 Hold rating. See the ratings
KeyBanc researcher Sangita Jain (a top 14% rated analyst) doubled down on a Strong Buy rating following the company's Q1 2025 earnings call, and increased her price target from $59 to $63.
Jain attributed the quarter's beat to "margins in both MTS and STS."
The analyst noted that management reaffirmed its FY 2025 guidance in spite of the beat, "likely prudent ahead of the impending HomeSafe ramp and continued EUCOM uncertainty."
KBR is also currently the 4th highest rated stock in the Engineering & Construction industry, which has an Industry Rating (what's that?) of A.
KBR shares have a Zen Rating of A, and rank in the 96th percentile of equities based on a holistic analysis of 115 factors that correlate with outsized returns.
Stocks with a Zen Rating of A have historically provided an average annual return of 32.52%. In the last 365 days, however, KBR stock has lost 14.79% in value. However, this only means that it is now trading at an attractive valuation — in fact, the stock ranks in the top 4% according to Value. (See all 7 Zen Component Grades here >)
5- Vertiv Holdings (NYSE: VRT
)
VRT stock offers a unique way to gain exposure to artificial intelligence. Vertiv Holdings does everything from installation and maintenance to repair when it comes to data centers. On top of that, it is one of the leading power management and, more importantly, cooling providers in the industry. With an already strong tailwind from Project Stargate, as well as record-breaking AI CAPEX, the business is well-positioned to capture a lot of growth from a dynamic narrative.
Zen Rating: B (Buy) — see full analysis >
Recent Price: $104.76 — get current quote >
Max 1-year forecast: $145.00
Why we're watching:
VRT stock currently has 5 Strong Buy ratings, 4 Buy ratings, and 2 Hold ratings. See the ratings
Stephen Tusa of JP Morgan (a top 15% rated analyst) recently doubled down on a Strong Buy rating, and increased his price target on Vertiv Holdings shares from $100 to $127.
In a sector review note, Tusa said the Electrical Equipment & Multi-Industry sectors have re-rated because of tariff de-escalation. Stock prices for names in the groups are now expensive on an absolute basis, the analyst noted.
Tusa explained that they adjusted their price targets for the sectors to account for "a higher absolute anchor multiple that reflects the move up in the S&P 500."
JPMorgan prefers names that guided conservatively, "embedding the harshest tariff reality," the analyst told readers.
VRT stock has a Zen Rating of B — stocks with this distinction have provided an average annual return of 19.88% since the turn of the century.
Our quant rating system ranks Vertiv stock in the top 6% of equities according to Growth and Financials. (See all 7 Zen Component Grades here >)
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