Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo talks about the market’s continued constructive action that sets up some key things to watch next week -- the intermediate-term trend for the market could turn up, and leading stocks are beginning to tighten up in a good way, possibly presenting some higher-odds entries ahead. Mike reviews names from a variety of areas (including even gold and off-the-bottom names) for you to build your shopping list.
Stocks Discussed: ARGX, ALNY, TGTX, TSM, ANET, ZETA, GVA, TOL, FIX, AEM, GDX, SHOP, UBER
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad briefly touch on Nvidia’s (NVDA) upcoming earnings before diving into the market’s rebound from the late-July/Early-August correction, Powell’s rate announcement in Jackson Hole and the recent jobs revision. Then they debate which electric vehicle stocks might offer some upside now that the “romance” phase is in the past and whether space stocks are the next hot sector on Wall Street.
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 22: The market’s rebound from the August 5 mini-panic has been unusual—in a good way, with a straight-up advance that’s recouped most of its prior decline, given up very little of its gains along the way, and has been led by a gaggle of growth stocks that have powered ahead on earnings. Now, we’re not totally free and clear here, and some short-term wobbles could easily come; by our measures, the intermediate-term trend is sideways and defensive stocks are percolating, so there’s more work to do. All in all, we’re putting a little more money to work tonight but will still be holding just shy of 40% in cash as we see if the market can further confirm a new uptrend.
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 19: The market isn’t totally out of the woods at this point—the intermediate-term trend of most indexes and growth measures is essentially neutral here, there’s plenty of overhead to chew through. That said, there’s no doubt the rebound has been impressive, with some indexes recouping 60% to 80% of their corrections, and individual stocks are acting much peppier of late. What happens from here will be key: Some backing off would be normal, but if any retreat is tame and individual stocks continue to flex their muscles, it would be a good sign—though obviously a huge drop would be iffy. For now, we continue to slowly rebuild exposure but are remaining flexible. We’ll nudge our Market Monitor up to a level 6 but are taking things on a day-to-day basis.
This week’s list is another that’s loaded up with powerful charts, all of which have recently surged on earnings reports. Our Top Pick has been extremely tedious for the past 16 months but is flashing some overwhelming buying power as the sector improves.
Movers & Shakers August 23: After two big support and accumulation weeks, this week has seen more digestion in the major indexes—and, really, we saw the first “real” selling since early August on Thursday, with some heavier-volume selling. Even so, as of this morning, it’s still shaping up to be a positive one, with most indexes up in the 1% range given the pre-market indications, maybe a bit more on the growth side of things.
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 22: The success of headliners Walmart and Target in the last week has helped drive consumer staples stocks as a group up nearly 5% in August. No other S&P 500 sector has performed better this month. And yet, consumer staples are “only” up 14% year to date, trailing the gains in the S&P 500 (17.3%).
Thus, the sector as a whole is still undervalued. That spells opportunity.
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 21: What a difference two weeks make! From the close on Monday, August 7 to the close on Monday, August 14, the S&P 500 was up about 8% and is again flirting with the high.
The market fell a lot from mid-July to early August. But it has since recovered all the losses. While the S&P is back near the high, the last month has been a wild ride to nowhere. Now what?
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 20: What recession? After a terrible start to August, the market has completely turned around. The S&P 500 has moved 7.5% higher since August 5 and is again near the high.
The recession fears that contributed to the worst day for the market in over a year were overblown. And numbers have come out since that indicate a recession is unlikely any time soon. But the Fed is still expected to start slashing rates next month. It looks like we will still get the rate cuts without a recession. The market loves it.
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 23: After two big support and accumulation weeks, this week has seen more digestion in the major indexes—and, really, we saw the first “real” selling since early August on Thursday, with some heavier-volume selling. Even so, as of this morning, it’s still shaping up to be a positive one, with most indexes up in the 1% range given the pre-market indications, maybe a bit more on the growth side of things.
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: Hi Mike. When do you buy stocks? Do you look at chart patterns and then buy only on breakouts? Can you share your buy rules?
Mike: It’s a great question, but I wouldn’t say there are strict criteria – we are looking for stocks that are generally acting well, and yes we will buy names breaking out, especially if it’s on earnings and such. That said, we’ll also buy some tight consolidations or pullbacks if the market advance is a bit long in the tooth.We also use market timing, of course, should the market still be neutral or negative (like now).I would say going ahead, we’re looking for strength given that we’ve finally seen the market correct, and the good news is many growth titles are bouncing well, so if/when the market decisively confirms a new uptrend, we’d think the best stocks will already be at new high ground.