MarketWatch published an article this past weekend that’s sure to have stressed out anyone who read it. The article, "Here are 7 charts guaranteed to stress you out about the stock market," threw cold water on the idea that the market’s momentum would carry into 2026.
It pointed out that the Nasdaq Composite fell last week, the fifth consecutive week doing so, and the longest streak since 2022. I went back eight weeks -- Dec. 19 through Feb. 13 -- and found that the SPDR S&P 500 ETF (SPY) fell in five of those weeks, gaining just 0.17%.
The markets appear to be at a crossroads. Forty-eight days into 2026, their direction appears to be up in the air.
In yesterday’s trading, 188 NYSE and 153 Nasdaq stocks hit new 52-week highs, while 65 NYSE and 286 Nasdaq stocks hit new 52-week lows.
That might not seem so bad. However, a week ago, 625 NYSE and Nasdaq stocks hit new 52-week highs, 1.8 times as many as yesterday. On the downside, the new 52-week lows yesterday were over two times higher than a week ago.
The markets' mood is shifting. I wouldn’t want to get caught in a stock whose momentum has been ongoing for an extended period or is just entering new lows.
To work around that, here are four stocks to consider, with two hitting new 52-week lows for the 40th time or more in the past twelve months -- a sign its correction has run its course -- and two hitting new 52-week highs for the 10th time or less in the past year -- the possibility that they’re about to go on an extended run.
Wish me luck.
NYSE Stock Hitting New 52-Week Low - FactSet Research Systems (FDS)
FactSet Research Systems (FDS) hit its 49th new 52-week low of the past 12 months yesterday at $185. Its stock is down 58.33% in the past year.
I always think of FactSet as the poor cousin of S&P Global (SPGI). I’m not sure why? FactSet puts out great information.
My first thought on why FactSet’s stock has gotten pummeled over the past year is that it’s been caught up in the software stock selloff. It appears its troubles go further back. Some question its growth prospects, suggesting that its revenue and earnings have grown by single digits over the past two years; never a good sign.
It doesn’t help that analysts can’t stand it. Of the 20 covering FDS, just three rate it a Buy (2.85 out of 5), although they do set a target price of $312.67, 69% above yesterday’s new 52-week low.
In Q4 2025, well-known investor Ron Baron acquired 1.07 million additional shares of FactSet, bringing Baron Capital’s stake to 2.89 million, or 7.7% of its stock. It will be interesting to see how much Baron is adding now that it’s down 35% year to date.
In the 12 months ended Nov. 30, 2025, FactSet’s free cash flow was $647.4 million according to S&P Global Market Intelligence. Based on an enterprise value of $8.32 billion, it has a free cash flow yield of 7.8%%. I consider anything 8% or higher to be in value territory.
With a 2.3% yield, you get paid to wait for investors to come back around. They always do.
NYSE Stock Hitting New 52-Week High - Canadian National Railway (CNI)
Canadian National Railway (CNI) hit its 10th new 52-week high of the past 12 months yesterday at $109.90. Its stock is up 6.77% in the past year.
My first of two Canadian companies, the railway stock hasn’t done much in the past year, or the past five years for that matter, down 0.8% over the last 60 months. It’s a little better with dividends, up 1.96%, but still, nothing to write home about.
The one thing I always go back to when it comes to CNI is Bill Gates. The Gates Foundation Trust owns 8.35% of the company. The foundation is CN’s largest shareholder. It has been a shareholder for over 23 years.
CN reported solid Q4 2025 results at the end of January. On the top line, its revenues were CAD$4.46 billion ($3.26 billion), 2.3% higher than a year ago, with adjusted earnings per share of CAD$2.08 ($1.52), 14.3% higher year over year.
More importantly, its adjusted operating ratio improved by 120 basis points in 2025 to 61.7%. That means its operating expenses were 61.7% of its CAD$17.30 billion ($12.63 billion) in revenue in 2025, adding about CAD$200 million ($146 million) in operating income.
With an emphasis on boosting free cash flow in 2026, look for CNI stock to continue moving higher as the year moves along.
Nasdaq Stock Hitting New 52-Week Low - Thomson Reuters (TRI)
Thomson Reuters (TRI) hit its 44th new 52-week low of the past 12 months yesterday at $81.91. Its stock is down 52.10% in the past year.
The second of my two Canadian companies has been a significant casualty of the software stock market worries driven by AI. However, despite the hit to its share price, analysts still like it. Of the 16 that cover it, 12 rate it a Buy (4.44 out of 5), with a target price of $138.35, which is 69% above its current price.
Like CN, Thomson Reuters ’ largest investor is patient capital. The Thomsons, Canada’s wealthiest family, own 70.5% of the stock. They’re not going anywhere. I like that in a stock.
The company’s CEO, Steve Hasker, had this to say about the current turmoil caused by AI:
“‘Our bet is that we can take our content and our expertise and our leadership position in research and know-how and use that to drive a leadership position in the legal AI-driven workflows,’ Mr. Hasker said Thursday. ‘And our bet is that others cannot come the other way,’” The Globe and Mail reported on Feb. 5.
By every multiple, TRI stock is cheaper than it’s been at any time in the past five years. These opportunities don’t come along very often.
Nasdaq Stock Hitting New 52-Week High - Diamondback Energy (FANG)
Diamondback Energy (FANG) hit its 9th new 52-week high of the past 12 months yesterday at $172.80. Its stock is up 7.39% in the past year.
I’m not an oil & gas follower, but for years, when writing for other publications, I recommended Diamondback because of its free cash flow generation. Thanks to lower oil prices, that’s changed some. However, hitting a new 52-week high, there must be a reason or two for the investor enthusiasm.
For starters, of the four stocks mentioned today, FANG is the most popular with analysts. Of the 32 that cover it, 29 rate it a Buy (4.72 out of 5), with a target price of $181, less than 10% above its current share price.
The company’s Q4 2025 results are due on Feb. 23 after the markets close. Analysts expect it to report earnings per share of $12.88 for the full year, down from $16.57 a year ago. They’re expected to drop by 21% in 2026, to $10.19 a share.
So, based on the 2026 estimate, its shares trade around 16.7 times this forecast. Historically, multiples have been in the single digits. What gives?
There is speculation that the independent oil and gas producer could be a takeover target, given its strength in the Permian Basin and ongoing industry consolidation. It’s always possible, I guess.
The more likely reason is the rotation out of tech into energy and other more defensive sectors. Of the 11 State Street Select Sector SPDR ETFs, the State Street Energy Select Sector SPDR ETF (XLE) has the best YTD performance, up 20.22%.
Unless economic conditions change enough for investors to go full risk-on, well-run energy companies like Diamondback will remain attractive.
As the company said when it reported Q3 2025 results, until oil prices move considerably higher, Diamondback will control what it can control, such as lowering its breakeven barrel price and increasing free cash flow.
I like the sound of that.
On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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