By Doug Busch

Revisiting former stock picks is an important part of the investment process, helping evaluate what worked, what failed, and whether the original thesis remains intact. Markets constantly evolve and reviewing prior ideas can uncover changes in momentum, leadership, valuation, or technical structure that may create either new opportunities or warning signs.

This week we discuss the following picks:

   -- Canadian Pacific Kansas City, written by Al Root and Teresa Rivas in 
      April. 
 
   -- Invesco Solar ETF, covered by Dan Victor in last month. 
 
   -- Gap introduced by Teresa Rivas in December. 

This note revisits past stock picks where new developments favor fresh buy or sell signals. Read last week's edition here.

Canadian Pacific Kansas City

The freight railroad company has gained 17% over the past year and now trades just 4% below its 52-week high. On the weekly chart, the stock is approaching the very round $90 level, an area that has marked the upper end of a narrow $70 to $90 trading range that has contained shares for five years. The stock is up 6% since our recommendation.

The daily chart shows improving relative strength versus industrial peers as reflected in the State Street Industrial Select Sector SPDR Fund:

While Canadian Pacific finds itself on a three-week losing streak, the pullback has been relatively mild, with shares declining only 2% in total during that stretch. Technically, the stock appears to be forming a cup-with-handle base. The low of the current pattern occurred on March 31, when the stock formed a bullish hammer off the 200-day simple moving average. That move also successfully retested the prior breakout level above the double-bottom pivot at $78.59, which was originally cleared on Feb. 4.

Enter on a break above the $88.18 pivot and the stock could reach $102 by mid-2026, representing 19% upside from current levels. Remain bullish above $84. Canadian Pacific was trading around $86 Wednesday.

Invesco Solar ETF

The ETF, which provides exposure to companies tied to the global solar energy sector, is up 24% year to date and 78% over the past 12 months. It is up 14% since our recommendation.

The daily chart shows the ETF acting well since June, with the price doubling from the $30 area before beginning to form a new cup-with-handle base in February. During that rally, the ETF first broke above a cup-with-handle pivot at $51.88 on Jan. 12, followed by another breakout above the $59.20 trigger level on May 1:

This week, it successfully retested the May breakout level, producing a bullish hammer Tuesday. With crude oil prices expected to remain elevated for an extended period, the solar sector could continue to shine.

The fund could reach $70 by mid-2026, 15% upside from current levels. Remain bullish above $58. The Invesco Solar ETF was trading around $61 Wednesday.

Gap

The apparel retailer has had a challenging year, declining 26% overall and 19% year to date, while offering a dividend yield of 3.4%. The stock is down 19% since our recommendation.

The weekly chart highlights a prolonged sideways trading range between the round $20 and $30 levels. This consolidation developed after the stock broke above a bull flag pivot near $20 in March 2024, with the original flagpole rally beginning at the very round $10 level:

Relative performance versus the SPDR S&P Retail ETF also reflects this lengthy digestion phase, with the ratio chart moving sideways for roughly the past 26 months.

Candlesticks have helped identify key turning points. Near the highs, bearish signals appeared through an evening star formation in the first week of April 2024, followed by a dark cloud cover and bearish engulfing candles in July 2024 and May 2025. At the lows during April and May 2024, the stock displayed consecutive bullish hammers along with clusters of dojis and spinning tops, in March-April 2025.

This week, the stock is once again testing the familiar $20 support zone while a bullish hammer appears to be forming. Enter here and add on a breakout above the double-bottom trigger at $28.06. The stock could reach $30 by year-end, a 44% gain from current prices. Remain bullish above $19.25. Gap was trading around $21 Wednesday.

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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May 20, 2026 22:31 ET (02:31 GMT)

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