3 Former Stock Picks Are Quietly Flashing Buy Signals Again — Barrons.com

By Doug Busch

Sometimes the market offers investors a second chance. Three of our former stock picks, in healthcare, oil services, and consumer staples, are quietly showing signs that opportunity is knocking. Each of these names is demonstrating renewed momentum, warranting a fresh look from investors seeking potential upside in sectors where leadership has already rotated.

When a stock sector improves, it often creates a natural tailwind, helping to carry momentum higher. Over the last three months, energy, consumer staples, and healthcare were three of the best-performing of 11 major S&P sectors. Their exchange-traded fund proxies, State Street Energy Select Sector SPDR ETF, State Street Consumer Staples Select Sector SPDR ETF, and State Street Healthcare Select Sector SPDR ETF, reflect this. Each is up between 7% and 15% since Oct. 27.

This week we revisit:

• Bristow Group, introduced by Dan Victor in December, and representing the energy sector;
• Cal-Maine Foods, analyzed by Todd Chanko in December (staples);
• DexCom, covered by Jacob Sonenshine last July (healthcare).

This is a weekly column. Read last week's edition here .

Bristow Group

Bristow, part of the strong energy equipment space, is already up 22% this year and trades just 1% below multiyear highs. Since our recommendation, it has gained 24%. The stock has declined only four sessions this year. Last week it surged 9%, showing excellent relative strength by doubling the gain of the VanEck Oil Services ETF, while also breaking out above a cup-base pivot at $43.09.

A look at VTOL's five-year weekly chart highlights strengthening momentum, with the stock riding a five-week winning streak, its first since July 2023. Heading into today, shares are up another 4% on the week. More importantly, the stock has cleared a stubborn resistance zone at the round $40 level, an area that had capped rallies numerous times since a bearish dark cloud cover in November 2021 and a doji in March 2022.

The stock notably doubled off the round $20 level in March and May 2023 and is now trading comfortably above a double bottom pivot at $38.74. Two weeks ago, it shrugged off another doji candle, reinforcing the idea that former resistance at $40 has now become a firm floor. Enter near $43.75, with upside potential toward $60 by year-end, representing roughly 33% upside from current levels. Remain bullish above $38.

Bristow Group was trading around $45 Wednesday.

Cal-Maine Foods

The eggs producer is trading 34% below its most recent 52-week high. Momentum has quietly begun to improve after disappointing earnings earlier this month. It is down 4% since our recommendation but has rallied 4% this week heading into today, putting it on pace for its first three-week winning streak in nearly 10 months. Notably, it has advanced in seven of the last nine sessions, with eight of those closing at the top of the daily range, a sign of growing accumulation.

Looking at the two-year weekly chart, there are several developments worth admiring. The week ending Jan. 9 — right after earnings — stands out as potential capitulation. It had the largest weekly volume since 2011 and brought the stock back to its 200-week simple moving average. That type of action often signals a washout, creating an attractive level to lean against on the long side.

The stock has also successfully retested a former bull flag breakout from October 2024, reinforcing the idea that downside pressure may be exhausted. From here, an entry at current levels could target a move toward $100 by mid-2026, representing roughly 20% upside. If strength persists, additional exposure could be added later in 2026 on a move above a potential double bottom pivot at $117.55. Remain bullish above $75.

Cal-Maine Foods was trading around $82 Wednesday.

DexCom

The medical device maker is down 16% over the last year and 12% since our recommendation. But it is off to a good start in 2026, up 11%, and higher nine of the last 11 weeks. This shows nice relative strength as DXCM is up 8% over the last two weeks while the iShares Medical Device ETF has declined by 6% .

A look at DexCom's one-year daily chart shows that the technical damage is being actively repaired. Following a double bottom in the mid $50s last November and April, strong volume has confirmed the nascent uptrend. Both the 50-day and 200-day simple moving averages are now sloping higher, and the stock recently broke out above a bullish inverse head and shoulders pivot at the round $70 level.

From here, an entry at current levels targets a move toward the very round $90 number by mid-2026, representing roughly 22% upside from current prices. That was a level the stock tested twice over the past year, first between January and March, and again in July. Remain bullish above $68.

DexCom was trading around $73 Wednesday.

Markets have short memories, but charts remember, and these names are starting to look interesting again.

   Doug Busch is the senior technical analyst at   Barron's Investor Circle . His technical view is added to stock picks, including those published 
exclusively for Investor Circle readers. A   glossary of technical terms is updated regularly with new entries. 

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