This Recent Pick Is Up 50% Monday and Looks Like a New Biotech Leader
Stock picking is working as the indexes struggle.
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Although the Iran situation is still messy, investors started off in an upbeat mood on Monday morning. The semiconductor sector (SMH) continues to lead the market higher and the Russell 2000 ETF (IWM) hit a new all-time highs with a gain over 1.2%. Breadth moved to even after a positive start. Google (GOOGL) and Amazon (AMZN) are weighing on the Magnificent Seven (MAGS), which is in the red.
I have my doubts about the ability of the senior indexes to gain positive momentum, but I do like the stock-picking action I’m seeing. There are a lot of good charts with positive fundamentals and there are traders looking for opportunities. The indexes are a distraction from where the opportunities lie.
Definium Blasts Higher on the Emerge Data
Last week I highlighted Definium Therapeutics (DFTX) due to the favorable chart and upcoming catalysts. Monday morning it blasted about 50% higher on positive top-line results from Emerge, which is an Orally Disintegrating Tablet for adults with major depressive disorder (MDD).
Analysts are issuing reports that the results are much better than expected and the stock can go substantially higher. I don’t see any new price targets yet but after taking some partial profits I’ll be looking for additional entry points. The company has a strong pipeline and it looks like it could be a leader in the biotechnology sector.
Watching National Energy Services
Another name on my radar is National Energy Services Reunited (NESR). NESR is one of the largest national oilfield services providers in the Middle East and North Africa, delivering integrated drilling, fracturing, cementing, and production services to national oil companies across the region, with deep exposure to the Middle Eastern (particularly Saudi Arabia) and North African markets.
Notably, NESR not only holds long-term contracts that typically run three to nine years and provide unusually strong revenue visibility, but is well-positioned for the oil infrastructure rebuild following the end of the Iran war. NESR hit traders’ radar with a multi-billion-dollar contract in Saudi Arabia providing a tailwind, prompting Barclays to raise its target to $34 and UBS to $31.
From a valuation perspective, analysts currently call for earnings growth of 39% in 2026 and another 22% in 2027, against a trailing P/E multiple of about 25x and a forward P/E multiple of 13x.
Technically, NESR trended steadily higher since August 2025 and broke to record highs in early January before falling back in late February and early March due to the Iran war. However, the shares quickly found support and have spent the past few months forming an ascending triangle at highs. With the Iran situation moving toward some resolutions, the likelihood of increased energy infrastructure in the Middle East is high.
The name may take a little patience, but EPS is expected to increase 56% and revenues 33% in the June quarter, and there will be much better clarity about the future when results are announced.
Strategy
I’m seeing some big reversals as I write, and that doesn’t surprise me too much. It is important to manage positions tightly right now. I do not believe the indexes have the capacity for much more upside in the short term, but there will continue to be some tradable rotational action, especially for stock pickers.
At the time of publication, Rev Shark was long DFTX and NESR.
