Finding Opportunities Beyond the Headlines
While financial media focuses on the same handful of popular stocks, significant opportunities often fly under the radar. This weekly watchlist identifies companies at potential turning points that could meaningfully impact your portfolio.
Our research involves analyzing earnings transcripts, examining technical patterns, and tracking institutional money flows to find stocks before they gain widespread attention. We look beyond what’s already priced in to uncover what the market hasn’t fully recognized yet.
Each week, we highlight three stocks where timing, valuation, and potential catalysts align to create favorable entry points. Our analysis goes deeper than surface-level metrics to help you make more informed investment decisions.
This Week’s Picks:
Berkshire Hathaway (BRK.B)
With recession concerns growing amid aggressive tariff policies, Berkshire Hathaway offers a rare bright spot in today’s market turbulence. The stock has pulled back 6.89% in the latest session, creating an attractive entry point for investors seeking stability. Berkshire’s massive $334 billion cash position and collection of recession-resistant businesses provide both protection and opportunity as the broader market corrects.
What makes Berkshire particularly valuable now is its dual advantage. The company’s subsidiaries—including GEICO insurance and Berkshire Hathaway Energy—provide essential services that consumers need regardless of economic conditions. These core operations generate reliable cash flows even during downturns. Meanwhile, the market pullback itself (with the S&P 500 down 16% from recent highs) creates potential acquisition targets at more reasonable valuations.
The current environment resembles previous periods where Berkshire’s approach has proven most effective. As economists forecast recession probabilities ranging from 40% (HSBC) to 60% (JPMorgan) if tariffs remain in place, capital preservation becomes increasingly important. Berkshire’s trillion-dollar market cap represents an attractive valuation given the company’s financial strength and ability to capitalize on opportunities that may emerge in a weakening economy.
Arm Holdings (ARM)
Arm’s 44% decline from its January peak has created an interesting opportunity in the AI chip architecture space. Currently trading at $87.64, near its 52-week low of $84.39, the stock has fallen despite maintaining its dominant position in mobile processors and expanding its data center presence. This selloff appears driven more by valuation concerns than by any fundamental problems in Arm’s business.
What makes Arm compelling is its position as a critical player in the AI revolution without taking on manufacturing risk. Rather than producing chips, Arm develops and licenses the architecture used by industry leaders including Apple, Qualcomm, Nvidia, and Amazon. The company’s share of the data center CPU market is projected to grow from 15% in 2024 to 50% in 2025, as major tech companies adopt Arm’s designs for their custom AI processors. AWS reports that more than 50% of new CPU capacity installed over the past two years uses Arm-based Graviton processors.
The numbers suggest significant potential despite recent volatility. Arm maintains impressive 94.04% gross margins, reflecting its capital-light licensing business. While the trailing P/E of 132 seems high, the forward multiple of 50 reflects expected earnings acceleration beyond the 26% growth achieved in fiscal 2025. With consensus price targets suggesting 77% potential upside and Arm’s strategic position in both the $21 billion cloud CPU market and the $500 billion Stargate Project, the risk-reward profile looks increasingly favorable.
Chewy (CHWY)
Chewy shares have pulled back over 21% from recent highs, creating an interesting entry point for a company with increasingly predictable revenue. The stock currently trades at $31.47, down 6.53% in the latest session but still well above its 52-week low of $14.69. What makes this pullback noteworthy is the contrast between share price volatility and the company’s stable business model, with 80.6% of Q4 net sales now coming from Autoship – their subscription-like recurring revenue program.
The e-commerce pet supplier has built a competitive advantage through customer loyalty that few retailers can match. Autoship customer sales have reached $9.4 billion, representing nearly 80% of the company’s total $11.9 billion revenue in fiscal 2024. This subscription model has grown faster than overall revenue for four consecutive years, increasing from 70% of sales in fiscal 2021 to current levels. The predictability of these recurring purchases gives Chewy enhanced pricing power and operational efficiency that should improve margins over time.
With the pet humanization trend continuing and Chewy’s strong position in online pet supplies, the company’s growth trajectory remains intact despite recent price weakness. The current market cap of $13 billion appears reasonable given that revenue has more than doubled over the past five years. For investors seeking exposure to stable consumer spending with e-commerce convenience, Chewy’s recent pullback offers an opportunity to invest in a business with unusually predictable growth.
Bottom Line
These three stocks represent different opportunities in today’s market environment. From Berkshire’s defensive strength to Arm’s AI infrastructure potential and Chewy’s recurring revenue model, each offers a distinct investment case based on current market conditions. As always, timing, valuation, and identifiable catalysts are key factors in our selection process.