Hershey Company Upgraded, Toast, Inc. Downgraded: Updated Rankings on Top Blue-Chip Stocks

The global equity markets have entered a period of significant recalibration as institutional investors shift their capital toward companies exhibiting a rare combination of fundamental strength and high-velocity buying pressure. This week, Louis Navellier, editor of Growth Investor and creator of the proprietary Stock Grader tool, released a comprehensive update to his ratings for 161 high-profile blue-chip stocks. The revisions, which span sectors from biotechnology to heavy industry, reflect a changing macroeconomic landscape where earnings quality and institutional sponsorship are becoming the primary drivers of share price performance.

The latest data indicates a major reshuffling among market leaders. Notably, household names such as Target Corporation and Amgen Inc. have seen their ratings elevated to the highest possible tier, while others, including retail giant Walmart and aerospace leader GE Aerospace, have faced downgrades as their quantitative momentum scores soften. These shifts are not merely academic; they represent a "follow the money" roadmap for the final months of 2026, highlighting where the world’s largest pension funds, hedge funds, and mutual funds are currently deploying their assets.

The Mechanics of Stock Grading: Quantitative vs. Fundamental Analysis

To understand the significance of these 161 rating changes, it is essential to examine the dual-metric system used to evaluate them. Navellier’s methodology rests on two pillars: the Fundamental Grade and the Quantitative Grade.

The Fundamental Grade assesses the internal health of a corporation. It tracks eight key growth variables, including sales growth, operating margin expansion, earnings growth, and earnings surprises. A high fundamental grade suggests that a company is efficiently converting its operations into profit.

Conversely, the Quantitative Grade is a measure of "institutional buying pressure." This metric tracks the flow of capital from large-scale investors. When a stock receives an "A" in this category, it indicates that "big money" is aggressively accumulating shares, often creating a floor for the stock price and driving upward momentum. The Total Grade is a weighted average of these two components, providing a holistic view of a stock’s potential.

Top-Tier Upgrades: The New Market Leaders

In the most recent update, 18 stocks were upgraded from "Strong" (B) to "Very Strong" (A). This elite group is characterized by near-perfect quantitative scores, suggesting that institutional demand is reaching a fever pitch.

Healthcare and Biotechnology Momentum

Amgen Inc. (AMGN) emerged as a standout in the healthcare sector, moving to a Total Grade of "A." While its Fundamental Grade remains a "B," its Quantitative Grade of "A" suggests that investors are increasingly viewing it as a defensive powerhouse with significant upside. Similarly, BridgeBio Pharma, Inc. (BBIO) and Guardant Health, Inc. (GH) were elevated to the top tier, reflecting a broader trend of capital flowing back into high-innovation medical firms.

The Logistics and Industrial Surge

Perhaps the most striking trend in the latest data is the universal upgrade of the North American rail network. Canadian National Railway Company (CNI), CSX Corporation (CSX), and Union Pacific Corporation (UNP) all moved to "Very Strong" status. While their Fundamental Grades are currently at "C," their Quantitative "A" grades indicate that institutional investors are betting heavily on a resurgence in freight volumes and logistics efficiency. This suggests that the "smart money" expects a robust period of industrial activity and trade for the remainder of the year.

Consumer Discretionary Resilience

In the retail space, Target Corporation (TGT) and Five Below, Inc. (FIVE) both secured "A" ratings. Target’s upgrade is particularly noteworthy given the broader volatility in consumer spending. The company’s ability to maintain a "B" Fundamental Grade while attracting "A-level" buying pressure suggests that its recent pivot toward value-oriented luxury and omnichannel efficiency is resonating with both shoppers and investors.

The Hershey Turnaround and Consumer Staples Shifts

One of the most significant narratives in this week’s report is the upgrade of The Hershey Company (HSY) from "Neutral" (C) to "Strong" (B). For much of the early 2020s, the confectionery giant struggled with skyrocketing cocoa prices and shifting consumer habits. However, the move to a "B" rating—supported by a "B" in both Quantitative and Fundamental metrics—suggests that the company has successfully navigated these headwinds.

The upgrade of Hershey coincides with a broader "Neutral to Strong" shift for several other consumer and precious metal names. Agnico Eagle Mines Limited (AEM), Newmont Corporation (NEM), and Wheaton Precious Metals Corp (WPM) were all upgraded to "B" status. This movement into gold and silver producers often indicates a hedge against currency fluctuations or a desire for tangible asset exposure among institutional portfolios.

Downgrades: Softening Momentum in Major Caps

While the upgrades highlight new opportunities, the downgrades serve as a cautionary signal for investors holding some of the market’s most popular names. A total of 43 stocks were downgraded from "Strong" to "Neutral," signaling that their period of outperformance may be stalling.

The Retail and Industrial Cool-Down

Walmart Inc. (WMT), which has long been a pillar of stability, was downgraded to a "Neutral" (C) rating. This change was driven by a drop in its Quantitative Grade to "C," suggesting that institutional investors are beginning to take profits or reallocate capital to higher-growth retail competitors like Target.

Similarly, GE Aerospace (GE) saw its rating slip to "C." Despite the ongoing global demand for aviation and defense, the data suggests that the stock’s valuation may have outpaced its immediate buying pressure, leading to a "Neutral" outlook in the short term.

Technology and Fintech Revisions

The technology sector also saw notable downgrades. Analog Devices, Inc. (ADI) and Amphenol Corporation (APH) both fell to "Neutral" status. More concerning for growth investors was the downgrade of Toast, Inc. (TOST), which dropped from "Neutral" to "Weak" (D). Despite a Fundamental Grade of "B," Toast’s Quantitative Grade fell to "D," indicating a significant withdrawal of institutional support. This often happens when a company’s growth narrative remains intact, but the market’s appetite for its specific risk profile wanes.

Sector Analysis: Winners and Losers

The 161 rating changes provide a clear picture of sector rotation.

• Semiconductors: While some names like Lam Research (LRCX) and Onto Innovation (ONTO) were upgraded to "Very Strong," others like Monolithic Power Systems (MPWR) were downgraded. This bifurcated market suggests that investors are becoming more selective, favoring companies that provide essential equipment for AI infrastructure over broader chip manufacturers.
• Energy: The energy sector showed mixed results. Cheniere Energy, Inc. (LNG) and Kinder Morgan (KMI) were downgraded to "Strong" (B), while YPF SA (YPF) was upgraded to "Very Strong" (A). This suggests a shift in preference toward international energy plays and specialized infrastructure over domestic midstream giants.
• Financials: Regional and large-cap banks faced a wave of downgrades. Popular, Inc. (BPOP), Northern Trust Corporation (NTRS), and Fifth Third Bancorp (FITB) all saw their ratings decline. This reflects ongoing concerns regarding interest rate margins and credit quality in a maturing economic cycle.

Broader Impact and Market Implications

The re-rating of 161 blue-chip stocks is a signal that the market is entering a "quality-first" phase. In previous years, low interest rates allowed many companies to maintain high stock prices despite mediocre fundamentals. The current data suggests those days are over.

The heavy institutional buying pressure (Quantitative Grade) seen in railroads and biotechnology suggests that the market is preparing for a "hard-asset" and "high-innovation" future. Meanwhile, the cooling of sentiment in traditional retail (Walmart) and defense (Northrop Grumman, which was downgraded to "Weak") suggests that investors are reassessing the growth ceilings for these mature industries.

For the individual investor, these ratings changes highlight the importance of active management. A stock that was a "Buy" three months ago may now be a "Hold" or a "Sell" based on the underlying flow of institutional capital. As Louis Navellier noted in his report, staying on top of these shifts is the primary way to identify profit opportunities before they become obvious to the broader public.

Conclusion and Future Outlook

As the market progresses through the second half of 2026, the divergence between winners and losers is expected to widen. The 161 stocks reviewed this week represent the core of the American economy; their performance often dictates the direction of the major indices.

The upgrade of companies like Hershey and Target suggests a renewed confidence in the American consumer’s resilience, provided the companies can maintain their fundamental health. Conversely, the downgrades of companies like Toast and United Airlines (UAL) serve as a reminder that even in a growing economy, sector-specific challenges and shifting institutional sentiment can lead to significant underperformance.

Investors are encouraged to use these ratings as a diagnostic tool for their own portfolios. In a market driven by data and institutional momentum, holding a "Very Strong" (A) rated stock provides a statistical edge, while clinging to "Weak" (D) or "Very Weak" (F) rated stocks can lead to significant capital erosion. The coming months will likely validate these ratings as earnings reports and institutional filing data confirm the trends identified in this latest update.