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CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo says he’s sticking with his cautious stance due to the continued intermediate-term iffiness from the market and many growth stocks -- but he’s also very flexible, as the rough December has created many more potential buying patterns among leaders, along with a bunch of names that have built launching pads in recent months. For now, he’s patient, but Mike reviews a bunch of names that he could pounce on if the buyers show up.
Stocks Discussed: CRDO, RBRK, TWLO, DASH, VST, GEV, TSM, NVDA, APPF, BIRK, MTZ, AR, EXE
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss the absent Santa rally, Tesla (TSLA) missing their delivery numbers and Hindenburg Research’s short report on Carvana (CVNA). Then they offer up eight New Year’s resolutions for investors, ranging from managing debt and savings to staying bullish, trusting the market, and a few assets to avoid. cabotwealth.com/street
Cabot Webinar
2025 Market Outlook: Winning Strategies for a Bullish Year Ahead
Join growth investing expert and Cabot’s Chief Investment Strategist Mike Cintolo for this can’t-miss annual investor event in which he’ll share:
- His view of the current market, and where it’s likely heading based on his proprietary indicators
- A roadmap for capitalizing on the momentum of the past two years while staying prepared for potential shifts
- A breakdown of December’s decline and what it signals for early 2025
- Key risks to watch out for – and how to safeguard your portfolio against them
- The successful strategies he’s used to consistently beat the market for over two decades – and how you can use them to generate outsized profits in 2025
Plus, he’ll reveal the stocks that are emerging as new market leaders – including 2 TOP PICKS that could double in the coming months!
Quarterly Cabot Analyst Meeting
The recording of the Cabot Prime Members Meeting with the Analysts is now available for you to listen to at your convenience—click here for access. This private call with our analysts is one of your exclusive Cabot Prime Core member benefits.
RECENT BUY AND SELL ACTIVITY
This table lists stocks bought or sold in the most recent Issues or Updates.
PORTFOLIO UPDATES THIS WEEK
Cabot Growth Investor
Bi-weekly Issue December 26: First off, this being our last issue of the year, all of us at Cabot wish you and yours a very happy, healthy and prosperous New Year. We’ll be back with a regular update next Thursday after the calendar flips.
As for the market, it’s been a fantastic year, with leading growth titles letting loose on the upside, and we’re happy to have made hay while the sun is shining—the year isn’t quite done but it’s looking like our second-best returns of the past 18 years, when I took over. We’re glad to have done right by you.
That said, we always deal with the here and now, so we’re riding into year-end in a cautious stance, as growth stocks have wobbled and our Cabot Tides and Two-Second Indicators are waving yellow flags. We’re definitely flexible, as some of the recent selling may have cleared the decks for another leg up, but given the evidence, we want to see strength first before embarking on another major buying spree. In this issue, we highlight more than a few names we could jump into if things go well, while sharing more details on our remaining stocks and the recent action.
Bi-weekly Update January 2: WHAT TO DO NOW: Happy New Year! December’s weak action has created some decent setups and taken a chunk out of sentiment, both of which are good to see—but the underlying evidence hasn’t changed, with our Cabot Tides negative and few names heading higher. We came into the year with around half the portfolio in cash, and we’re remaining cautious today—our only change is placing Flutter (FLUT) on Hold.
Cabot Top Ten Trader
Weekly Issue December 23: First and foremost, this is our last issue of 2024—next Monday is one of our two weeks off all year—so we want to wish you and yours a very Merry Christmas, Happy Holidays and a healthy and prosperous New Year. We’ll be back at it with a fresh Top Ten issue on January 6.
As for the market, things finished up with a nice rally last Friday, but that doesn’t undo the action of the prior couple of weeks as a whole, which saw many leaders take hits and many major indexes crack their intermediate-term uptrends. To be clear, we remain flexible, and if the buyers pounce on the recent weakness for a few days, we think there will be lots of “resumption” patterns among individual stocks. Still, given the near- and intermediate-term selling we’ve seen, we want to see buyers show up in a meaningful way first before putting a bunch of money back to work. We’ll leave our Market Monitor at a level 5.
This week’s list is once again very growth-y, which we do find encouraging. Our Top Pick showed exceptional power in November and has now rested for three weeks, offering up a solid entry point, though we advise starting small given the environment.
Movers & Shakers January 3: Happy New Year! The market’s stance didn’t change much during the past couple weeks of 2024—big-cap indexes are trying to hang in there, but the vast majority of the market and growth stocks had a rough December. The equal-weight S&P 500, for instance, fell a whopping 6.6% on the month, and many growth measures were down about the same (if not a bit more).
Cabot Value Investor
Monthly Issue December 5: The market party is on, but someone forgot to tell healthcare stocks.
They’re the only one of the 11 S&P 500 sectors that is actually down in the month since the presidential election. That has everything to do with these five letters: RFK Jr. But are concerns about Trump’s controversial pick to lead the Health and Human Services Department overblown? It appears Wall Street is starting to think so, as the sector has been in steady recovery after an initial sell-off. Still, as a whole, healthcare stocks have been the weakest performers of any major sector this year. And that spells opportunity for value investors.
In today’s issue, we add a big-name, undervalued healthcare stock to our Buy Low Opportunities portfolio. It’s a company whose name you likely know – and that’s showing signs of more consistent profit growth.
Details inside.
Weekly Update January 2: It was a rare rough December for stocks.
Sure, the S&P 500 and the Nasdaq were down just over 2%, propped up as usual by enduring strength in the Magnificent Seven. But the losses were far greater in almost every other corner of the market, with 10 of the 11 major sectors declining, small caps tumbling nearly 8%, value stocks off by more than 6%, and energy and materials stocks retreating by double digits.
Cabot Dividend Investor
Monthly Issue December 11: It’s been a great year in the market with the S&P up 27%. And there is good reason for optimism about 2025.
We are in a bull market that began in October of 2022. Bull markets don’t usually run out of gas after just two years, especially recent ones. The Fed has begun a rate-cutting cycle that is likely to last for the next two years. Plus, the economy is solid and expected to get stronger. Rate cuts in a strong economy are unusual, but the combination should be great for stocks.
One sector may have a better 2025 prognosis than the overall market: Financial stocks have been on a tear since the summer. The Financial Select Sector SPDR Fund (XLF) is up 33% YTD and 22% since early August. Despite the recent spike, many financial stocks are still cheap after a decade and a half of underperformance.
Financial stocks are dependent on yield spreads, economic growth, and relaxed regulations. All those areas are improving or expected to improve as a result of the election.
In this issue, I highlight one of the highest-growth companies in an industry that is on the rise. It is the leading all-digital bank in the country. Unlike many other industry-leading stocks, it is still well below the high because of a recent temporary stumble which has likely only delayed its price spike.
Weekly Update January 2: The year 2024 was another great year for stocks. The S&P was up over 23% for the year. It’s a nice addition to the 26% return last year. It is the first back-to-back 20%-plus return years for the index since 1998.
But the year ended on a sour note. Usually, good years in the market finish strong. But not this time. True, the S&P 500 was down less than 2% in December. But that’s only because the big tech companies are still doing okay. The rest of the market had a terrible month.
Cabot Early Opportunities
Monthly Issue December 18: We wrap up a fruitful year with a December Issue of Cabot Early Opportunities highlighting five names spanning everything from bottled water to social media to bitcoin mining.
I like the diversity of this Issue, which has something for everyone.
Cabot Income Advisor
Monthly Issue December 17: By most measures, 2025 looks pretty good for stocks.
The Fed has begun a rate-cutting cycle that should last for the next two years. Historically, stocks do well when the Fed is cutting rates and there is no recession. And the economy has been solid. This bull market is just 25 months old and has returned 65%. Bull markets usually don’t just run out of gas after two years. In fact, the average bull market has lasted 50 months and returned 152%.
But stocks are expensive. The S&P currently sells at 22.3 times forward earnings compared to an average of 16 times over the last twenty years. The market returned 26% in 2023 and about 28% this year with two weeks to go. It might be tough for stocks to deliver another consecutive year of 20%-plus returns.
It may be that a lot of the easy upside is behind us. Stocks can still perform well, but they’ll probably have to earn it in 2025.
In this issue, I highlight a stock that is poised for a strong earnings rebound in 2025. It is a stock that bounces a lot between the highs and lows. And it is currently well below the high. It is also one of the best healthcare companies on the market at a time when the population is older than ever before and aging at warp speed.
Weekly Update December 31: And we were having such a good time. Stocks were killing it in November after the election. But December turned out to be a real stinker.
Sure, the S&P 500 is only down about 1% over the past month. But that’s only because the big tech companies are still doing okay. The rest of the market is getting slapped around. Eight of the eleven S&P sectors are down in December. And many individual stocks are having a terrible month.
Cabot Turnaround Letter
Monthly Issue December 18: Many are surprised to learn that the concept of telehealth wasn’t a direct result of the Covid pandemic in 2020. Indeed, the practice of online consultations between patients and medical personnel has been practiced for over 20 years, and this month’s featured company is arguably the first one to bring it to global prominence.
Weekly Update January 3: In today’s note, we discuss pertinent developments and institutional ratings changes for some of the stocks in the portfolio, including Alcoa (AA), Duluth Holdings (DLTH), SLB Ltd. (SLB) and the SPDR S&P Retail ETF (XRT).
The fabled “Santa Claus Rally” failed to appear this season, prompting concern for the early part of 2025 among many investors. We discuss what it entails for our investment approach.
Cabot Money Club
Monthly Magazine January: Inflation is still a problem for many Americans, and it feels unavoidable when it shows up every day at the dining room table. We may not be able to control the price of goods, but this month we’re fighting back against inflation by spending smarter with nine tips that can help keep inflation from busting your budget.
Stock of the Month December 12: The markets reacted strongly—and bullishly—to the results of the presidential election and also found favor after the Federal Reserve’s quarter-point rate reduction.
As of today, they’ve pulled back a bit, awaiting the latest inflation report.
However, the economy continues rolling along. Unemployment remains steady, and consumer sentiment is positive. And while the housing market continues to be challenged by low inventory and rising prices, on the local level, I’m seeing improvement in both categories.
ASK THE EXPERTS
Prime Question for Mike: I will be out of the country (India) for the first 2 weeks of January and wonder about selling some of my more volatile stocks. With the time change it would be pretty hard to sell while I am away. Interested in your thoughts. Thanks.
Mike: Thanks for writing. First off – sounds great. Have a fantastic trip.As for stocks -- not trying to dodge the question, but I really can’t go there – not a financial advisor so how much risk and all that you want to take is up to you. I do think having stops makes sense in general, and I would say we’re in some sort of correction (Tides are negative, etc.) is in force, so if you want to trim because of that, again, makes sense. But exactly if/how to sell is really more how much risk/reward you want to take.