Market noise is relentless. Financial headlines scream about the same handful of stocks while important opportunities—the kind that can meaningfully impact your portfolio—often fly completely under the radar.
That’s exactly why we publish this watchlist each week.
While most investors are distracted by mainstream narratives, we’re digging through earnings transcripts, analyzing technical setups, and monitoring institutional money flows to identify companies at potential inflection points. Our focus isn’t on what’s already priced in, but rather on what the market hasn’t fully appreciated yet.
Each week, we spotlight three stocks that merit your attention. We focus on opportunities where timing, valuation, and catalysts align to create potentially favorable entry points.
Our rigorous analysis goes beyond surface-level metrics to identify opportunities that most retail investors don’t have time to uncover. Each pick comes with clear reasoning, specific triggers to watch for, and a compelling risk-reward profile designed to help you make more informed investment decisions.
Here’s what caught our eye this week:
Chewy (CHWY)
Chewy shares have pulled back over 21% from their recent highs, creating an intriguing entry point for a company with increasingly predictable revenue streams. 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 particularly interesting is the stark contrast between share price volatility and the company’s increasingly 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 quietly built a competitive moat through customer loyalty that few retailers can match. Autoship customer sales have reached an impressive $9.4 billion, representing nearly 80% of the company’s total $11.9 billion revenue in fiscal 2024. This subscription-based model has grown faster than overall revenue for four consecutive years, increasing from 70% of sales in fiscal 2021 to its current levels. The predictability of these recurring purchases provides Chewy with enhanced pricing power and operational efficiency that should translate to improved margins over time.
With the humanization of pets trend showing no signs of slowing and Chewy’s dominant position in online pet supplies, the company’s growth trajectory remains intact despite recent share price weakness. The stock’s current market cap of $13 billion appears reasonable given the company’s more than doubled revenue over the past five years and its increasingly loyal customer base. For investors seeking exposure to stable consumer spending patterns with e-commerce convenience, Chewy’s recent pullback presents an opportunity to gain exposure to a business with unusually predictable growth dynamics.
Arm Holdings (ARM)
Arm’s dramatic 44% decline from its January peak has created an intriguing opportunity in the AI chip architecture space. Currently trading at $87.64, the stock sits near its 52-week low of $84.39 despite maintaining its dominant position in mobile processors and rapidly expanding its data center presence. The recent selloff appears driven more by valuation concerns and macroeconomic uncertainty than by any fundamental deterioration in Arm’s business prospects, creating a potential disconnection between price and long-term value.
What makes Arm particularly compelling is its positioning as a critical infrastructure player in the AI revolution without taking on manufacturing risk. Rather than producing chips, Arm develops and licenses the architecture that powers processors from industry leaders including Apple, Qualcomm, Nvidia, and Amazon. The company’s share of the data center CPU market is projected to surge from 15% in 2024 to 50% in 2025, driven by major tech giants adopting Arm’s designs for their custom AI processors. This remarkable market share expansion is supported by concrete customer wins, with AWS reporting that more than 50% of new CPU capacity installed over the past two years uses Arm-based Graviton processors.
The financial metrics suggest significant upside potential despite the recent volatility. Arm maintains extraordinary gross margins of 94.04%, reflecting the capital-light nature of its licensing business model. While the trailing P/E of 132 initially appears steep, the forward multiple of 50 reflects expected earnings acceleration beyond the 26% growth achieved in fiscal 2025. With consensus price targets suggesting potential upside of 77% and Arm’s strategic position in both the $21 billion cloud CPU market and the ambitious $500 billion Stargate Project, the risk-reward profile appears increasingly favorable for investors willing to look beyond near-term market turbulence.
Berkshire Hathaway (BRK.B)
As recession fears mount amid aggressive tariff policies, Berkshire Hathaway stands out as a rare bright spot in an increasingly turbulent market. The stock has pulled back 6.89% in the latest session, providing an attractive entry point for investors seeking a fortress-like balance sheet during uncertain times. With an unparalleled $334 billion cash position and a collection of businesses largely designed to weather economic downturns, Berkshire offers both defensive protection and offensive firepower as the broader market continues its correction.
What makes Berkshire particularly compelling in the current environment is the dual nature of its advantage. The company’s subsidiary businesses – including GEICO insurance and Berkshire Hathaway Energy – provide essential services that consumers continue paying for regardless of economic conditions. These core operations generate reliable cash flows even during recessionary periods, creating a stable foundation that few other companies can match. Meanwhile, the market pullback itself (with the S&P 500 down 16% from recent highs) improves Berkshire’s prospects by creating potential acquisition targets and investment opportunities at more reasonable valuations.
The current market environment echoes previous periods where Berkshire’s approach has proven most valuable. With leading economists now predicting recession probabilities ranging from 40% (HSBC) to 60% (JPMorgan) if tariffs remain in place, capital preservation becomes increasingly important for portfolio construction. Berkshire’s trillion-dollar market cap reflects its substantial business holdings but also represents a comparatively attractive valuation given the company’s financial strength and positioning to capitalize on distressed opportunities that may emerge in a weakening economy.
