By Doug Busch
As we revisit prior ideas that delivered strong performance, our investment approach is turning slightly more aggressive.
Previous weeks saw us shunning growthier areas. Now, our attention turns to technology and consumer discretionary stocks, two sectors where the setup and relative strength suggest significant upside in the months ahead.
This weekly note highlights the charts, key levels, and risk/reward dynamics of names we believe are positioned to lead the next leg higher. Read last week's edition here.
Todd Chanko introduced CACI International in January. The defense and government technology contractor has delivered an impressive 78% return over the past year. The stock now sits just 8% below its recent 52-week high and occupies a sweet spot at the intersection of defense and technology. The latter sector is beginning to show early signs of recovery. Shares are up 3% since our recommendation.
Looking at the one-year daily chart, the stock has clearly led the market, as shown on the ratio chart against the S&P 500. Relative strength remains firm, shares are up 3% this week while the S&P 500 is down 1%.
The resilience has been notable. After completing a bearish evening star on Jan. 26 and suffering an 8.5% pullback on Feb. 11, the stock quickly regained its footing. It is now riding a six session winning streak. Shares can be initiated here, with the opportunity to add on a move through the double-bottom pivot at $638.17.
I see potential for a move toward $775 by year-end, representing roughly 23% upside from current levels. Remain bullish above $590. CACI was trading around $622 Wednesday.
Twilio was covered by Jacob Sonenshine last September. The cloud-based communication provider is showing nice relative strength against software peers, up 10% over the last month compared with the iShares Expanded-Tech Software ETF, which is flat during the same period. It is 15% off its most recent 52-week high, which is half the decline of the IGV. Twilio is up 16% since our recommendation.
Looking at the one-year daily chart, the stock is above its 200-day simple moving average, a rarity among software rivals currently. While it encountered resistance at the 50-day simple moving average this week, that pause appears temporary as a potential double bottom pattern continues to take shape.
Importantly, the price is stabilizing not far from where a bullish island reversal completed following the 20% gap higher on Oct. 31, which occurred after a well-received earnings report. Shares can be initiated here, with the opportunity to add on a move above the double-bottom pivot at $137.74.
I see potential for a move toward $180 by year-end, representing roughly 46% upside from current levels. Remain bullish above $115. Twilio was trading around $121 Wednesday.
Teresa Rivas reported on Expedia Group last September. The online travel company has had a rough start to 2026, down 24% so far but is up 42% since our recommendation. It recorded a six-week losing streak between mid January and late February. In my opinion this presents an opportunity.
Looking at the five-year weekly chart, the stock endured a sharp correction of more than 100 points, nearly 40%, trading within the very round $200-$300 range. The decline began with a bearish harami near $300 in mid-January, and volume expanded notably throughout the drawdown.
However, last week's 6% gain produced a bullish engulfing candle, suggesting buyers are beginning to reassert control. The stock is also finding support at its rising 50-week simple moving average and has successfully retested a prior cup-with-handle breakout pivot at $207.83 from last August, constructive behavior from a longer-term standpoint.
I see potential for a move toward $310 by year-end, representing roughly 44% upside from current levels. Remain bullish above $195. Expedia Group was trading around $224 Wednesday.
The levels are defined, the risk is clear, and now we let price do the talking.
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
March 05, 2026 00:23 ET (05:23 GMT)
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