By now, it may seem like the software industry's recent stumble is old news... The carnage in the space has been all over the financial media. And here in the Chaikin PowerFeed, my colleague Joe Austin has warned about these stocks a couple times...

Finding Hidden Standouts in This Beaten-Down Industry By Vic Lederman, publisher, Chaikin Analytics By now, it may seem like the software industry's recent stumble is old news... The carnage in the space has been all over the financial media. And here in the Chaikin PowerFeed, my colleague Joe Austin has warned about these stocks a couple times... Joe first discussed the Power Gauge's weak outlook on the space last week. At the time, the State Street SPDR S&P Software & Services Fund (XSW) had a "very bearish" rating. And only 10 stocks in the fund had a "bullish" or better grade. That compared with 56 "bearish" or worse holdings... and 71 in "neutral" territory. And as Joe mentioned yesterday, XSW is still in rough shape. It remains "very bearish" in the Power Gauge. Now, I agree with Joe's bleak warning on XSW. But, as he has also mentioned, not every company in the space looks bad. In fact, there are some higher-quality stocks hiding among this group. This helps show the importance of being selective – particularly in this type of market environment. And of course, the Power Gauge can help us find these "diamonds in the rough"... Recommended Links: Here's What You Missed Yesterday A rare class of AI stocks has opened a way to potentially double your portfolio in 2026. It works by predicting the biggest earnings beats on 5,000 stocks, BEFORE they occur. A colossal "divide" coming to AI on February 24 has opened the best opportunity since 2022 to apply this breakthrough new strategy today. Wall Street legend Marc Chaikin shares the full details and two free picks. Watch now (time-sensitive stocks). Washington's 'Project Vault' Changes Everything Whitney Tilson, the hedge-fund veteran that 60 Minutes called during the 2008 crash, just unveiled a new AI strategy that ranks 6,000-plus stocks. One unexpected name just got a near-perfect score, and he's revealing the ticker for today's wild market. Click here to learn more. The Power Gauge Says This Software Stock Is Unique Right now, Zoom Communications (ZM) is one standout in the software industry... The company needs little introduction. It's a household name with videoconferencing. You see, as XSW has shed about 15% of its value over the past month, Zoom's stock has jumped by roughly 9%. ZM shares were trading around $81 on January 21. Barely a week later, they spiked to more than $96. This growth was far from random. Take a look at this one-month chart of Zoom with some data from the Power Gauge... You see, the "smart money" on Wall Street had its eyes locked on Zoom. As Zoom's stock price crossed above its long-term trend line, these institutional investors dove in. Again, this isn't a coincidence. This influx of smart money drove the share price even higher. Naturally, this growth caused the Power Gauge to flip Zoom's rating into "bullish" territory. Today, the stock earns a "very bullish" rating. Folks, there's something special about Zoom's business that has helped protect it from the longer, broad downtrend in the software space. You see, many investors fear AI could render certain software irrelevant. But that sentiment isn't hitting Zoom... Using AI to Augment Instead of Replace Again, Zoom's software is for videoconferencing. The platform allows folks to collaborate for work, school, or recreational purposes. Of course, the company includes an AI model in its software. But it augments the main function rather than replaces it... Zoom's AI takes notes and captures the context of conversations that users have in real time. It can then turn those notes into briefs, documents, or even assist with follow-up actions to streamline workflow. As AI develops, humans will still need ways to communicate online – especially in recreational ways. So it's unlikely that AI agents can outright replace this basic human need. But as I noted, AI certainly can provide a productivity boost for Zoom's users. The company's business can benefit from advancements in AI. Of course, Zoom isn't the only example of this concept. Another, although smaller, videoconferencing stock – RingCentral (RNG) – is among the five "bullish" stocks in XSW today. As a whole, the Power Gauge says that software is still a risky industry right now... But this shows just how much investors can benefit from finding stocks that stand out from the rest in their industry. And here at Chaikin Analytics, the Power Gauge is at our side to help do just that. Good investing, Vic Lederman   Editor's note: Amid all the changing sentiment with AI and tech, being selective with stocks is especially important in the current environment. That's why Chaikin Analytics founder Marc Chaikin just went on camera yesterday for a special event... In it, he shared a new twist on what he sees coming in 2026. And he explained a chance to double your money on multiple occasions... if you understand what's coming next to AI and other breakthrough sectors. If you missed Marc's event, you can watch a free replay with all the details here. Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 +0.12% 7 20 3 S&P 500 +0.16% 121 284 93 Nasdaq -0.1% 21 52 27 Small Caps +0.03% 613 959 313 Bonds +0.17% Financial +1.06% 20 37 19 — According to the Chaikin Power Bar, Small Cap stocks and Large Cap stocks are Bullish. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Utilities +4.93% Real Estate +2.57% Health Care +1.31% Consumer Staples +1.2% Industrials +0.67% Energy +0.32% Materials -0.4% Consumer Discretionary -1.94% Information Technology -2.15% Financial -2.52% Communication -2.7% *  *  *  * Industry Focus Capital Markets Services 11 36 16 Over the past 6 months, the Capital Markets subsector (KCE) has underperformed the S&P 500 by -11.55%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #17 of 21 subsectors and has moved down 1 slot over the past week. Indicative Stocks ARES Ares Management Corp CG The Carlyle Group In COIN Coinbase Global, Inc *  *  *  * Top Movers Gainers NCLH +12.15% FISV +6.89% LUV +6.16% CEG +5.05% PSKY +4.94% Losers GPC -14.56% ALLE -9.38% LDOS -8.38% VMC -7.76% FDS -7.64% *  *  *  * Earnings Report Earnings Surprises CNH CNH Industrial N.V. Q4 $0.19 Beat by $0.08 KVUE Kenvue Inc. Q4 $0.27 Beat by $0.05 VMC Vulcan Materials Company Q4 $1.70 Missed by $-0.41 EQT EQT Corporation Q4 $0.90 Beat by $0.14 GPC Genuine Parts Company Q4 $1.55 Missed by $-0.27 *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at katzronnie7@gmail.com. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized financial advice. © 2026 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation. This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.