Reviewing prior stock picks is how investors turn experience into valuable feedback. A recommendation is only a thesis until the market tests it. The review shows which assumptions held and which ones failed.
This week we cover:
DexCom, written by Jacob Sonenshine in June.
Bristol Myers Squibb, covered by Dan Victor in November.
Quanta Services, introduced by Teresa Rivas in October.
This note revisits recent stock picks where new developments favor fresh buy or sell signals. Read the last edition here.
DexCom
The medical device company trades just 3% below its 52-week high and has advanced in 11 of the last 16 weeks, including two 17% weekly gains in late May and July. On the weekly chart, the stock is approaching the very round $90 level, where it encountered resistance between January and August 2025. DexCom is up 23% since our recommendation.
Looking at the stock's long-term monthly chart, note the bullish falling wedge that has developed on the ratio chart against the State Street Health Care Select Sector SPDR ETF since early 2024. The stock has essentially traded sideways since late 2021, following a massive advance that began with a bullish morning star completed in November 2017. From there, the stock surged an incredible 1,450% over the next four years.
Since that peak, a double-bottom base has taken shape, featuring three doji candles in mid-2022 and the completion of bullish morning stars in May 2025 and May 2026. The stock is now pausing just below its 50-month simple moving average, a key threshold it has failed to break since a 40% monthly decline in July 2024.
Enter on strength above that moving average at $92 and look for a move toward $140 by mid-2027, representing 55% upside from current levels. Remain bullish above $87. DexCom was trading around $90.50 Wednesday.
Bristol Myers Squibb
The biopharmaceutical company trades just 3% below its 52-week high. On the weekly chart, the stock broke above a cup-with-handle trigger at $62.99 and remains comfortably clear of it. Bristol Myers is up 45% since our recommendation.
After a nice uptrend against healthcare peers on the ratio chart versus the State Street Health Care Select Sector SPDR ETF between November and March, the stock spent the past several months digesting those gains. A bullish golden cross in December provided a tailwind, while the stock broke above the $60.88 double-bottom trigger on July 23 and powered higher. This is encouraging, as the best breakouts tend to work right away. Notice also how the bullish harami on June 22 at the 200-day simple moving average marked a durable low within the base.
The stock later broke above a bull-flag at $65 and is now attempting to push above the long-legged spinning-top from Aug. 19. Look for Bristol Myers to trade toward $77 by year-end, representing 15% upside from current levels. Remain bullish above $64. Bristol Myers was trading around $67 Wednesday.
Quanta Services
The infrastructure and utility-services play is up 63% over the past year, but now sits 22% below its 52-week high. The stock has declined 11 of the past 15 weeks but appears to be approaching an area of support. Quanta Services is up 40% since our recommendation.
Looking at the daily chart, the stock has lagged behind peers since May, with a clear downtrend developing during that time. Round-number theory is now coming into play, with the stock forming a bullish hammer Tuesday at the $600 level.
This summer's decline has essentially retested the April bull-flag breakout, which itself began with a bullish morning star completed on Jan. 12. The stock ran into trouble near $800 in early May, forming a couple of dojis followed by a bearish hanging man. A double-bottom base attempted to take shape but never fully materialized, and the stock has now filled the gap from July 29, the day before an impressive 17% earnings-related gain, its fourth consecutive positive earnings reaction.
A bear flag has since taken shape, but I believe the stock will ultimately break above it. An entry here could set the stage for a move toward $800 by mid-2027, representing 31% upside from current levels. Remain bullish above $580. Quanta Services was trading around $600 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.
Join us for the next live Q&A: Hear from our stock pickers and technical analyst as we discuss the latest market developments-and take your questions. Register here
Share your questions and thoughts in the "Conversation" section below to engage directly with the author and our community
Receive alerts about more content from this author by clicking "Follow" next to the author byline at top