Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo goes into great detail about the market’s very encouraging bounce, with the best aspect being the gaggle of growth stocks that are acting constructively, including many that have shown outsized buying volume after being pulled down by the market. That said, because the market hasn’t confirmed itself on the upside, Mike is still only nibbling, but he says he’s having trouble containing his watch list there are so many potential setups.
Stocks Discussed: SG, BOOT, MELI, LLY, ALNY, NTRA, CPNG, GEV, RKT, NOW, TTD, CRUS, FOUR
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss the strength of the American consumer, inflation falling into the 2% range and what the Fed’s path forward looks like. Then, they talk about Chipotle’s (CMG) surprise decision to poach Starbucks’ (SBUX) CEO and whether a change in CEO moves the needle for companies. To close out the “Big 3,” they take a look at AST SpaceMobile (ASTS) after shares ran up 50% ahead of their planned satellite launch. Finally, they explore the heightened trading volume at the end of the day, why it can catch retail investors off guard, and whether it’s worth worrying about.
Cabot Webinar
Boost Your Profits: 4 Experts & Their Top Picks for Fall 2024
Join seasoned Cabot analysts Mike Cintolo, Tyler Laundon, Tom Hutchinson, and Nancy Zambell as they share their wealth of wisdom.
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 August 8: The market’s pullback went over the falls late last week and on Monday, with panicky trading leading to a huge gap down--and possibly a short-term low. Overall, the evidence tells us the intermediate-term trend is down and that, even if we have bottomed, plenty of repair work will be needed. That said, the longer-term evidence is still positive and, frankly, we’re not having trouble filling up our watch list for potential fresh leaders. Long story short, we remain cautious here and hold lots of cash, but we’re not sticking our head in the sand, either, and could have a couple of small moves if the market continues to stabilize.
Bi-weekly Update August 15: WHAT TO DO NOW: The market’s rebound has been very encouraging, especially when looking at individual growth names—we’re seeing more constructive action now than we were during the narrow advance of June and July, including among all of our holdings. That said, the intermediate-term trend for most everything is still neutral at best (negative for lots of stuff), so the possibility of a partial or full retest still exists. Given our large cash position, we’re going to add half-sized positions tonight in Palantir (PLTR) and Axon Enterprises (AXON), two strong potential leading titles, but we’ll also still hold a 50%-ish cash position as we watch to see how things play out from here. Details below.
Cabot Top Ten Trader
Weekly Issue August 12:After a very sharp dip for most major indexes and especially the Nasdaq, a bounce is underway. When looking at individual stocks, we’re fairly encouraged with what we see, which is a good sign that there will be leadership to sink our teeth into once this correction finishes up. But, at this point, we can’t conclude the correction is over, with most major indexes and key measures still buried under resistance (such as 50-day lines) and with formerly strong areas (chips, etc.) still looking suspect. We’re not opposed to a nibble here or there, but we continue to think remaining patient will pay off. We’ll move our Market Monitor up to a level 5, but still think keeping plenty of cash on the sideline makes sense.
This week’s list is chock-full of names that are acting great, most of which have recently shown big-volume strength after earnings, though we prefer to aim for dips in many cases. Our Top Pick is a familiar name that staged a classic earnings-induced breakout last week.
Movers & Shakers August 16:It’s been an outstanding recovery week for the market, with the major indexes all up very nicely, led by the Nasdaq (up around 5%), though most things are up in the 2.5% to 3.5% area coming into today.
Cabot Value Investor
Monthly Issue August 1: Two years after the yield curve inverted, there’s still no U.S. recession in sight. As a result, financials – beaten to a pulp during the double whammy of the 2022 bear market and the March 2023 bank collapse – have become the fastest-growing non-tech sector of the market. It’s also one of the most undervalued. So in this month’s issue, we add a very recognizable big bank that does a little bit of everything – and seems to be everywhere. It’s growing at a healthy clip and yet is cheaper than even the average financial at the moment.
Details inside.
Weekly Update August 15: Inflation is dead.
OK, it’s not “dead.” But at 2.9% in July, as reported Wednesday morning, it has now (narrowly) reentered the Federal Reserve’s magical 2% realm for the first time in nearly three and a half years – since March 2021. For all the inflation angst during those past three and a half years, the market has fared pretty well overall – the S&P 500 is up 30% since the first CPI print north of 3% was reported in mid-May of 2021. On a per-year basis, that only slightly trails the average annual return in the large-cap index of 9.9% since its inception in 1928.
Cabot Dividend Investor
Monthly Issue August 14: The explosive growth of artificial intelligence, electric cars, and manufacturing is causing an explosion in the demand for electricity in this country.
After nearly two decades of stagnant growth, electricity demand is expected to soar in the years ahead. This year alone, electricity demand is growing 81% more than it did last year. Electricity demand is expected to grow at nearly twice the past rate for the rest of this decade.
The new demand transforms certain previously stodgy and boring utility stocks into growth investments.
In this issue I highlight one of the very best and fastest-growing electricity producers in the country. This company is in an ideal position to benefit from the increasing electricity demand from data centers and other sources. AI may be the cutting edge of technological innovation. But it doesn’t work without electricity. While most investors are running around chasing the same AI stocks, we can reap the rewards of the tremendous new opportunity from Thomas Edison’s invention.
Weekly Update August 7: Monday was a bloodbath in the market. All three indexes posted massive losses. The Dow was down 2.6%, the S&P fell 3%, and the tech-heavy Nasdaq fell 3.43% on the day. The indexes recovered some of the losses on Tuesday. What can we expect going forward?
Cabot Early Opportunities
Monthly Issue July 17: In the July Issue of Cabot Early Opportunities, we continue to lean into the strong market and focus our attention on the small end of the market cap curve.
We have small and mid-cap players in the software, semiconductor, green energy, industrial tech and AdTech spheres, each of which has compelling reasons propelling shares higher.
Cabot Income Advisor
Monthly Issue July 23: The S&P spent most of the first half of July setting new highs. But that changed last week. The technology sector sold off on news of new AI chip export restrictions to China. The S&P fell about 2% for the week, giving up most of the gains for July. It may be a blip. It probably is. But the market is high, and stocks showed vulnerability to bad headlines.
A flatter or down market going forward makes income more valuable. The cash register continues to ring regardless of short-term market gyrations. At the same time, many income stocks are still cheap, and interest rates are likely to trend lower from here.
Some of the very best income stocks are in the energy sector. After recent price shocks and other problems in the energy sector, investors are coming around to realizing energy is a strong business that isn’t going anywhere for a long time.
In this issue, I highlight one of the best natural gas companies on the market. It is a newly formed company in the business of exporting abundant and cheap American natural gas overseas. It’s big business. In a short time, this company has become one of the world’s biggest natural gas exporters.
Weekly Update August 13: Isn’t this fun? The market gave us whiplash last week. The crash last Monday was the worst day for the market in years. It seemed like the sky was falling. But investors sobered up and the market closed flat for the week.
The tumult of last week was just a noisy road to nowhere. But the market also again showed great vulnerability to negative headlines. And while all that recession talk last week seems to have been clearly overblown, a recession is on the radar now. The market is resilient as usual. But don’t get too comfortable.
Cabot Turnaround Letter
Monthly Issue July 31: As I mentioned in my first installment of the Cabot Turnaround Letter, the most valuable lesson I have learned in my professional career as a price forecaster is that the rate of change – of just about any metric – tells us everything we need to know about the immediate future. When the rate of change accelerates, it tends to continue accelerating. When it decelerates, it tends to continue decelerating. And the resulting push and pull is a large part of what comprises the business cycle.
Weekly Update August 16: In today’s note, we discuss the recent earnings reports from Berkshire Hathaway (BRKB), B2Gold (BTG) and Kopin (KOPN), among others. We’re also making a new addition to the portfolio in the form of YETI Holdings (YETI).
Cabot Money Club
Monthly Magazine August: Exchange-traded funds (ETFs) are a popular low-cost alternative to mutual funds that can help investors achieve their diversification goals, gain exposure to asset classes and sector trends they’re interested in, and save money while they do it. This month, we’ll dive into the pros and cons of investing in ETFs, how to identify the funds that match your investing style, and how to evaluate their risks and potential. In short, we’ll explore everything you need to know to make more money investing in ETFs.
Stock of the Month August 8: I have to admit, a couple of weeks ago, on our Cabot Street Check podcast, Chris Preston, host and Chief Analyst for Cabot Value Investor, and I discussed the possibility of a recession and I commented that I thought recession fears were mostly over.
Well, I’m going to reconsider that (a bit) after Monday’s 1,000+ point loss in the Dow. Last week’s jobs reports came in at 114,000 jobs—considerably less than the 185,000 expected—spooking the markets and causing economic gurus to once again bring up the possibility of the dreaded “R” word. Additionally, the unemployment rate edged up to 4.3% and manufacturing and construction spending were also less than expected, furthering economic worries.
ASK THE EXPERTS
Prime Question for Mike: I have had Nvidia (NVDA) for over a year now and have done great. Do you think now is a good time to sell Nvidia in light of the delay on the new chips? Or do you think I should hold on to it?
Mike: I don’t think the chip delay is a huge deal, but I do think it (and chip stocks in general) have had huge, prolonged runs, and the action of late looks a bit abnormal to me. I still lean toward NVDA not having topped out, but I do wonder if it’s going to need time to repair the damage and simply rest after being so popular and having such a big move.
To me, I might consider a middle ground in your situation – selling some, but holding most, and seeing how things play out. There’s no easy answer, but my guess for NVDA (and for most growth names) is it could bounce near-term but probably needs time to consolidate.