By Doug Busch

Reviewing former stock picks can be just as important as identifying new opportunities, as it allows investors to evaluate what worked, which signals proved most effective, and whether the original thesis remains intact.

This week we discuss the following picks:

   -- Cactus, written by Todd Chanko in March. 
 
   -- Netflix, covered by George Glover last May. 
 
   -- Wabtec, introduced by Al Root in November. 

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

Cactus

The oil equipment play now trades just 3% below its most recent 52-week high. The stock rose only two of the last five weeks, but those two gains were powerful, with gains of 14% and 8%. The stock has added 20% since our recommendation.

The daily chart shows Cactus has lagged its services peers since the start of 2026 on the ratio chart versus the VanEck Oil Services ETF:

Despite that relative weakness, the stock has acted constructively since triggering a bullish golden cross in December, signaling improving longer-term momentum. Shares initially broke out above a double-bottom-with-handle pivot at $45.28 on Dec. 3. The lows of the current cup-with-handle base have successfully retested that breakout area. Notably, both base formations were punctuated by bullish harami candles on Oct. 13 and March 20. From a trend perspective, both the 50-day and 200-day simple moving averages continue to slope upward.

Investors could look to enter on a move above the $57.66 trigger, with a potential advance toward $73 later in the second half of the year, representing 28% upside from current levels. Remain bullish above $53. Cactus was trading around $56 Wednesday.

Netflix

The stock is down 23% over the past year and trades 35% below its 52-week high. Netflix is on a four-week losing streak, which began with a bearish engulfing candle during the week ending April 17. The stock is down 24% since our recommendation.

Looking at the ratio chart against the State Street Communication Services Select Sector SPDR ETF, Netflix has underperformed since the fourth quarter of last year:

Bulls will want to see the recent break of the downtrend that began in March continue to gain traction. That reversal coincided with a failed breakdown below a bear flag, the type of false move that often leads to sharp rallies in the opposite direction. The doji formed on Feb. 17 also signaled that a near-term low may have been developing.

The stock showed encouraging relative strength Tuesday, rising 2.6% while the XLC finished essentially flat. Shares also filled an upside gap left from Feb. 26. Investors could enter here and add above the developing double-bottom pivot at $94.80. From current levels, a move toward $120 in the second half would represent a 38% gain. Remain bullish above $84. Netflix was trading around $86.50 Wednesday.

Wabtec

The rail technology company, has gained 32% over the past year. It trades just 2% below its 52-week high and has risen five of the last seven weeks. The stock is up 31% since our recommendation.

Looking at the daily chart, one must respect the stock's consistent uptrend on the ratio chart against the State Street Industrial Select Sector SPDR ETF since the start of the fourth quarter last year:

Shares have been in a strong uptrend since breaking above a cup-with-handle pivot at $211.53 on Dec. 3. Like many leading stocks, Wabtec is now presenting investors with a potential add-on entry point. The stock has formed a bull flag that began with a bearish evening star completed on April 10, followed by a bullish piercing line on April 22 shortly after filling an upside gap from the April 7 session.

A move above the $275 trigger could see a rally toward $317 in the latter half of 2026, representing 18% upside from current levels. Remain bullish above $259. Wabtec was trading around $269 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 13, 2026 22:46 ET (02:46 GMT)

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