đ Wall Street Radar: Stocks to Watch Next Week
đź Volume 74
When the Kitchen Gets Too Hot, You Build Your Own
This week, the market did what it does best: it made liars out of everyone.
January started with Wall Street leaning so far forward they were practically kissing the pavement. Record low cash. Hedges? What hedges? AI was the lock, the sure thing, the trade youâd mortgage your motherâs house for.
Then, in the span of a few weeks, the script flipped.
Not because AI stopped working (itâs working just fine, thanks) but because someone finally asked the question nobody wanted to hear: whoâs getting cooked by this thing?
Turns out, itâs not the robots that are the problem. Itâs the humans who thought they were irreplaceable.
The Software Purge
The S&P 500 Software Index didnât just stumble; it got dragged into the alley and worked over. Meanwhile, Goldmanâs âAI resilientâ basket? Outperforming as if it had insider information. The marketâs telling you something, and itâs not subtle: software isnât dead, but the gravy train has left the station.
If your product is a glorified wrapper around a database, a feature some kid with a laptop can replicate in a weekend using Claude or ChatGPT, youâre in trouble.
The companies that survive this arenât the ones with the slickest UI or the best Series B pitch deck. Theyâre the ones managing the messy, high-stakes stuff: systems of record, critical data infrastructure, workflows where a screw-up means lawsuits, not just a bad Yelp review.
Complexity is the new moat. Liability is the new defensibility. Everything else is just noise waiting to get compressed into an API call.
The Contagion Spreads
But it didnât stop at software. The fear metastasized. Wealth managers, brokers, and tax advisers (the entire white-collar apparatus that spent a decade getting fat on margin expansion) suddenly looked vulnerable.
A decade of optimism got repriced in weeks.
Private debt markets, loaded up on exposure to these businesses, started sweating. The S&P 500 had one of its ugliest stretches in months before a softer inflation print gave it permission to stop bleeding.
Weâre range-bound now. Choppy. Difficult. The kind of market where forcing a trade is how you get your face ripped off.
Cash Is a Position (Again)
So we did what any sane operator does when the kitchenâs on fire: we stepped back. Closed another position. Raised more cash.
When setups arenât following through, when the edge isnât there, you donât trade for the sake of trading. You wait. You watch. You preserve capital.
Aggression has its place. This isnât it.
Building in the Wreckage
But hereâs where it gets interesting.
While the market was busy eating itself, we decided to test the AI disruption thesis firsthand.
Weâve been building our own app: rewriting and integrating the proprietary algorithms and indicators we originally developed on TC2000, but in a new environment built specifically for how we trade.
(Shhh⌠keep it between us â itâll be free for our Substack paid subscribers! đ)
Swing setups. Momentum plays. Real-time signals. No bloat.
And you know what? Itâs shockingly easy now!
Not frictionless: there are still technical landmines, moments where youâre staring at the screen wondering what the hell just broke, but the leverage AI tools provide is undeniable. A small team with strong ideas and some curiosity can build things that wouldâve required a full engineering department three years ago.
It feels like building a video game, except this one actually makes us better at our job. And yeah, some companies are absolutely going to get disrupted.
Weâre watching it happen in real time, because weâre doing the disrupting.
Irreplaceability at All Costs
So hereâs where we are. The marketâs shifted from âgrowth at all costsâ to âirreplaceability at all costs.â The companies that win from here arenât the ones with the best story; theyâre the ones that are too embedded, too complex, too critical to replace.
Weâre staying cautious. Higher cash. Selective exposure. And while everyone else is panicking about AI, weâre building tools that give us an edge in whatever comes next.
Because in the end, the best way to survive disruption isnât to bet on who wins.
Itâs to make sure youâre not the one getting replaced.
Join the free TradeDeck waitlist now to show your interest!
If demand is strong, weâll fast-track the public beta and open limited early access to the software weâre currently testing in-house.
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Each stock carries a risk badge: â ď¸ High | đ Medium | đĄď¸ Low.
Based on volatility, float, technicals, and fundamentals. Size your positions accordingly.
đ Free Setup: Make It Count
PAHC: Phibro Animal Health Corp đ
What they do: A global developer and manufacturer of animal health products and mineral nutrition solutions
Why watch? Phibro Animal Health has undergone a significant transformation following its acquisition of Zoetisâ medicated feed additive (MFA) business, which has reshaped the companyâs Animal Health division and provided a meaningful growth catalyst. For those unfamiliar with medicated feed additives, these are products mixed into animal feed to prevent disease, promote growth, and improve feed efficiency in livestock: a critical component of modern animal agriculture.
The company is executing on its âPhibro Forward Initiative,â a multi-year program designed to drive operational efficiency through structural changes. The initiative includes three key pillars: First, establishing a global procurement organization to leverage scale for better pricing and cost reduction. Second, strengthening Salesforce effectiveness and reducing employee turnover through CRM tools and enhanced customer focus, and third, expanding the product portfolio with new offerings for both livestock and companion animals, which should drive revenue diversification and growth.
The recent financial results demonstrate that this strategy is working. Phibro reported a strong second-quarter performance with net sales of $373.9 million, up 21% year-over-year, and a 41% increase in adjusted EBITDA. Management raised fiscal 2026 guidance to $1.45â$1.5 billion in sales, $245â$255 million in adjusted EBITDA, and $120â$127 million in adjusted net income, significant upward revisions that reflect confidence in the business trajectory.
The Animal Health segment led the growth, with sales rising 26% to $290 million, driven primarily by the acquired MFA business. The new MFA operations contributed $94.1 million in the quarter, with total MFA growth of 34%. Legacy MFA sales dipped approximately 5%, largely due to a roughly $10 million inventory-timing impact that management expects to reverse in the coming quarter.
From a balance sheet perspective, the company generated $47 million in trailing twelve-month free cash flow and ended the quarter with $74.5 million in cash and short-term investments. Gross leverage stands at 3.1x and net leverage at 2.8x; manageable levels given the growth profile and cash generation. Management also announced a planned CEO transition in July, with Jack Bendheim moving to executive chairman and Donnie Bendheim assuming the CEO role.
Technical Outlook: The stock was recently rejected at all-time highs of $54.62 and has since formed a very narrow Darvas box, a consolidation range of just $2.00 from low to high. This tight range indicates indecision but also compression, which often precedes a significant move. However, we generally prefer to see more than just a couple of days of consolidation before entering, as very short consolidations are more prone to failure. A few additional days of sideways action would increase the odds of a successful breakout. Once the stock clears the all-time high resistance at $54.62, thereâs blue sky ahead with no overhead supply, a setup that can lead to explosive moves as there are no prior resistance levels to contend with.
Why We Donât Wait for Sunday
Markets donât move on your schedule. The best low-risk entries donât announce themselves politely and wait for the weekend newsletter.
They show up when they show up. And if youâre not positioned, you miss them.
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