By Doug Busch
Markets are constantly evolving, and yesterday's stock picks can often become today's fresh opportunities. As trends mature and prices digest prior moves, many former standouts quietly reset their technical profiles, creating new setups that can reward patient investors. With that in mind, it's worth revisiting several prior stock selections that, after periods of consolidation or pullback, are beginning to flash signs of renewed potential.
This week brings us to a diverse group of stocks:
-- Burlington Stores, introduced by Teresa Rivas on Dec. 22. -- Ituran Location and Control, covered by Dan Victor on Dec. 2. -- Bristol Myers Squibb, also reported by Dan, in November.
This is a weekly column. Read last week's edition here.
Burlington Stores has returned a modest 10% return over the past year but 12% since our write-up. It belongs to a group that has generally performed well: over the last year, Five Below surged more than 110%, Dollar Tree climbed 97%, and TJX Cos. gained roughly 30%. Look for Burlington to play catch-up in 2026.
Burlington's daily chart shows that it is prone to short bursts of strength on the ratio chart versus the Consumer Discretionary Select Sector SPDR ETF benchmark. The key will be for the stock to maintain that relative strength. Round number theory is coming into play, with the stock holding above the $300 level, a former thorny resistance dating back to last January. That area also marks a breakout above a double bottom pivot at $298.12 from Jan. 2. The stock has now recorded seven consecutive closes above $300, a strong sign that prior resistance is turning into support. An entry here makes sense, with a potential move toward $360 in the second half of the year, representing roughly 20% upside. Remain bullish above $295.
Burlington was trading around $301 Wednesday.
Ituran Location and Control, an Israeli technology company, has gained 36% over the past year and 11% since being introduced in this space. The stock offers a rare combination of income and growth, with a 4.5% dividend yield. It's worth noting that Ituran is part of a strong regional trend, with the iShares MSCI Israel ETF up 50% over the last 12 months. The ETF hasn't recorded a losing streak longer than three weeks in more than 20 months.
The daily chart reflects a healthy uptrend, highlighted by a recent breakout above a symmetrical triangle. The pattern began with a bearish dark cloud cover candle on Feb. 27, making it important that this area doesn't evolve into a double top with current prices. Encouragingly, the stock is holding firm while consolidating in the mid-$40s, a much stronger showing than during the February to March and August pullbacks last year. Shares continue to ride the 21-day exponential moving average, and a bull flag formation is now taking shape. A decisive break above $45 would imply a measured move toward $55, potentially in the second quarter, representing roughly 22% upside from current levels. Remain bullish above $42.75.
Ituran Location and Control was trading around $44.50 Wednesday.
Bristol Myers Squibb, a healthcare heavyweight, has gained 24% since our pick. The 4.5% dividend yield makes for an attractive combination for value-oriented investors. The stock has risen six of the past seven weeks, with volume supporting the move and signaling steady institutional accumulation.
The daily chart offers plenty to like. Late last year, the stock recorded a bullish golden cross as the 50-day simple moving average moved above the 200-day. On the ratio chart, shares have also broken out of a long period of underperformance versus the State Street Health Care Sector SPDR ETF starting in November. Bristol Myers broke above a cup with handle pivot at $55.14 on Jan. 7, with a prior breakout from a bullish falling wedge helping to accelerate the right side of that formation. A move toward the very round $70 level in the second half appears achievable, representing roughly 25% upside from current prices. Remain bullish above $52.
Bristol Myers Squibb was trading around $56.50 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.
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
January 15, 2026 04:02 ET (09:02 GMT)
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