Latest Summary
CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo continues to avoid most of the market’s damage thanks to his timing indicators, and he’s doing what he normally does in down markets -- use them to spot stocks that are resisting the decline and should be able to accelerate higher once the market finds its footing. For now, Mike remains defensive, but as sentiment gets wrung out and some big-picture positives emerge (like lower Treasury rates), he’s focused on the next big rally.
Stocks Discussed: EXEL, RPRX, ALKS, TTWO, ZS, OKTA, CWAN, LNW, NTNX, RKT, KWEB, FXI, FEZ, GFI, WPM, GFI
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss the fallout from tariffs, a correction in the Nasdaq, small caps, and growth stocks, and how much further the market could fall. Then, they talk about the recent surge in European stocks, Bitcoin, year-end calls, and Severance vs. White Lotus. For more information about the offer mentioned in this episode, visit cabotwealth.com/street.
Cabot Webinar
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 March 6: After a huge run and a choppy two-month stretch, the sellers have taken control and are crushing most stocks, especially growth titles, many of which broken down and--for the big winners of last year--are flashing abnormal action. With our Cabot Tides, Two-Second Indicator and Aggression Index firmly negative, we’re mostly on the sideline and are content to wait things out until the next uptrend gets underway.
Encouragingly, though, there are still a good number of fresher growth stocks (got going in the last two or three months) that are taking the selling in stride; upside will be limited for now, of course, but tonight we have an expanded watch list of names that could be new leaders down the road. Eventually, the sun will shine again, but for now it’s best to focus mostly on capital preservation, which will allow us to make that much more money when the bulls are back.
Bi-weekly Update February 27: WHAT TO DO NOW: Remain defensive. While there’s a chance the recent selling storm could be the final shakeout of this two-plus-month consolidation, the fact is the intermediate-term evidence (both top-down, and among many growth stocks) is now negative, with a lot of damage done to leaders. We’ve been holding a lot of cash for weeks but have pared back further, selling our remaining AppLovin (APP) stake on a special bulletin yesterday, leaving us with around a 66% cash position in the Model Portfolio. We have no changes tonight but are remaining flexible (buy or sell) for whatever comes next.
Cabot Top Ten Trader
Weekly Issue March 3: Last week saw the softness in leading growth titles spread to most of the market, with most indexes now in intermediate-term downtrends and there’s no question market leadership has taken a hit. That said, the rest of the market isn’t in nearly as bad shape, and what we’re watching closest is how the current bounce phase progresses: Obviously, a strong, big-volume, multi-day bounce in the market and fresher leading names would be encouraging, but right now, we think it’s best to play defense (our Market Monitor now stands at a level 4) but to also remain flexible.
This week’s list has a lot of names that have gone through corrections in recent weeks and months—likely kicking out most weak hands and, in many cases, resetting their uptrends. Our Top Pick is trying to break free from a nine-month rest; given the market, we’d keep it small if you enter and see how the market and breakout attempt go from here.
Movers & Shakers March 7: The market’s sharp downmove has continued this week, with all of the major indexes sporting sharp losses in the 3% to 4.5% range and growth-heavy measures down another 6%. We are seeing a small bounce this morning following the jobs report (mostly in line) and some positive quarterly reports, but nothing that changes the overall picture.
Cabot Value Investor
Monthly Issue March 6: U.S. markets are in a tailspin, and previously hard-charging growth stocks are leading the slide. But two asset classes that have often been overlooked in recent years are off to very good starts in 2025: value stocks and European stocks. Having just “retired” a European value stock that reached our price target in last week’s update, today we add a Dutch-based mid-cap with an almost identical profile – but at a time when undervalued European stocks are getting treated like U.S. growth stocks.
Details inside.
Weekly Update February 27: Last Friday on the Cabot Street Check podcast I co-host with my colleague Brad Simmerman, I predicted that a 5% market pullback was forthcoming after a month of stagnation. We’re more than halfway there already: the S&P 500 is 3% off its highs entering Thursday and narrowly halted a four-day losing streak on Wednesday.
My reason for thinking a mini-correction was imminent was simple: a strong fourth-quarter earnings season had been helping to counteract all the bad news (tariffs, escalating inflation, stagnant interest rates, etc.) that’s impacted the market over the past six weeks … and Q4 earnings season is now effectively over. Sprinkle in the fact that the S&P had actually poked its head above new all-time highs just over a week ago, and a pullback of some kind seemed almost inevitable.
Cabot Dividend Investor
Monthly Issue February 12: Other stocks are picking up the slack while technology is wobbling. The grossly lopsided performance that dominated this market for so long couldn’t last. And there’s more to the story than just sector rotation. Earnings are catching up.
I’m still bullish on the portfolio AI stocks. But other sectors of the market are overdue for stronger relative performance. These stocks are taking over and likely to post much better relative performance over the course of the year.
Healthcare is perhaps the best of all sectors that aren’t technology. It’s an all-weather industry that offers a very seldom-found combination of safety and growth. Plus, these stocks are poised ahead of the megatrend of the rapidly aging population. Healthcare demand is skyrocketing. And the best stocks should get a great ride.
In this issue, I highlight four healthcare stocks currently in the portfolio. Despite the lopsided bull market returns so far, a couple of these stocks have been among the very best performers. And now they should be poised for a strong run in 2025.
Weekly Update March 5: Tariffs have officially arrived. And the market doesn’t like them one bit.
On Tuesday, the Trump administration imposed 25% tariffs on Mexico and Canada and raised the level from 10% to 20% on China. Stocks fell as of midday on Tuesday, but not dramatically. It’s unwelcome news to a market that was already dealing with still-sticky inflation and diminished economic growth expectations.
Cabot Early Opportunities
Monthly Issue February 19: The February 2025 Issue highlights a variety of both new and familiar names across the software, delivery, MedTech, appliance and land management markets.
As always, this Issue should have something for everyone.
Cabot Income Advisor
Monthly Issue February 25: The market is sputtering. While the S&P is still up slightly for the year, it’s at the same level it was three months ago.
After two glorious years of being up over 20%, stocks may be expensive and due for consolidation. While that’s certainly possible, it’s normal and healthy in a bull market. And stocks may not be as expensive as they seem.
This bull market has been driven higher by technology and the artificial intelligence catalyst. Without a handful of large technology companies, the bull market returns so far would be quite lame. But things are changing. There are good reasons to believe the relative returns of the rest of the market should vastly improve.
The rally has broadened out. Other stocks are picking up the slack while technology is wobbling. The grossly lopsided performance couldn’t last. And there’s more to the story than just sector rotation. Earnings are catching up.
The energy sector in particular is likely to benefit from the shared bounty going forward.
There are powerful reasons to believe certain energy stocks will benefit from increasing natural gas demand, more oil and gas drilling, and friendlier regulations. Some of these stocks have pulled back from the highs and offer an attractive entry point. In this issue, I highlight two energy stocks that are likely in a multi-year bull market that historically generate high call premiums.
Weekly Update March 4: After a strong start to the year, February was a down month for the S&P 500. The index is just a little over 1% higher YTD. But the news is better than it may seem.
Sure, the market has been struggling. But it’s only because of technology, which is down over 5% YTD. Nine of the other ten sectors in the S&P are positive for the year. Some sectors are having very good years as Health Care is up over 8% and Consumer Staples and Financials are up over 7% YTD.
Cabot Turnaround Letter
Monthly Issue February 26: At face value, it’s admittedly a challenge to build a bullish case for the long-term viability of satellite radio. Indeed, as the popularity and reach of digital streaming platforms grow, satellite as a communications medium looks antiquated by comparison.
That said, a case can also be made that reports of satellite radio’s demise are decidedly premature. When researching for this month’s issue of CTL, for instance, I came across an article under the following headline: “Satellite Radio is Dead.” It went on to explain, “Satellite radio will come crashing down to Earth within the next two years. The newly merged Sirius XM Radio is already living on borrowed time—and borrowed money—and simply will not and cannot survive.”
Weekly Update March 7: In today’s note, we discuss pertinent developments for some of the stocks in the portfolio, including Alcoa (AA), Janus Henderson Group (JHG), Paramount Global (PARA) and Starbucks (SBUX).
This week’s watch list includes a focus on the suddenly interesting toy market outlook, with two major industry members poised to benefit from it.
Cabot Money Club
Monthly Magazine March: Housing prices remain elevated, rents are up, and mortgage rates are stubbornly high, but the fact of the matter is, life doesn’t wait on the housing market. This month, we’ll explore the options available to homeowners and prospective homebuyers so that they can worry less about higher housing costs and get on with the important business of living life to the fullest.
Stock of the Month January 10: Welcome to our 2025 TOP PICKS issue! Our Cabot analysts have kindly shared their top stock ideas for this year. And you’ll find that they include a variety of companies that should be attractive to investors of all styles—growth, value, dividend payers, and companies on the cusp of turning around—as well as small, mid, and large-cap stocks. I hope you’ll find one or more to your liking!
But first, let’s take a look at the economy and the markets and talk about what’s in store for this year.
ASK THE EXPERTS
Prime Question for Mike: Hello Mike, I’m sure I’m not the only one curious about the overall market sentiment. You mentioned several reasons for the recent market mini-meltdown, but you didn’t touch on the uncertainty stemming from the current administration—particularly the president. This uncertainty is clearly weighing on the markets, and until that obstacle is resolved, it’s hard to see a strong recovery. I’m (almost) a purely technical investor and try to tune out the noise from the news. However, I do pay attention to major geopolitical events that can have a significant impact on the markets—such as COVID, and then later the supply chain disruptions it caused. Don’t you think these factors are important to consider while waiting on the sidelines?
Just for reference, I’m currently 90% in cash.
Mike: Thanks for writing. It’s a fair question.So to me, there’s ALWAYS something that’s “causing” the market decline – banks, debt, currency movements, tariffs, the Fed, etc. It’s sort of a given. I certainly don’t disagree that the uncertainty surrounding tariffs is having an effect. The question is, what would be the trigger for “a decline in uncertainty enough for the market to do well?” By definition, we’d see that by the market doing well for a period of time.It wasn’t anything this broad, but I remember lots of tariff threats and the like in 2019 and the market did very well that year.Plus, yesterday, they delayed some tariffs, which could have been “good” – and if the Nasdaq rallied 4% on the news, it would have been perceived as good. But of course, it fell sharply.Thus, I’m not ignoring it at all – but I try to focus on evidence that would cause me to take action (buy or sell), and that is going to be market-based. That’s just the way I do things – more than one way to do it of course, but ignoring that stuff over the past couple of decades has helped.