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CABOT EVENTS
Cabot Weekly Review (Video)
In this week’s video, Mike Cintolo talks about the market’s continued solid action -- while the top-down evidence is once again positive but not powerful (including a yellow flag or two from the broad market), the bottoms-up (individual stocks) evidence remains extremely bullish, with tons of stocks from a variety of areas ratcheting higher. Mike talks about some thoughts on taking partial profits in big winners you have, a couple of sectors that seem to be emerging after long rests and a bunch of stocks that are joining the party, too.
Stocks Discussed: CLS, NFLX, BX, SHOP, PLNT, HUBS, DAY, PAYC, TOST, VIK, XLS, LITE, ALAB, EXEL, PODD, BKR, FTI
Cabot Street Check (Podcast)
This week on Street Check, Chris and Brad discuss Nvdia’s (NVDA) earnings no longer driving the market, Target’s (TGT) tumble on a weak third quarter, MicroStrategy (MSTR) falling 20% on a Tweet from Citron Research and Spirit Airlines’ (SAVEQ) bankruptcy filing and what it means for shareholders. Then, Nancy Zambell of Cabot Money Club joins to talk all about the state of the housing market, REITs, and the sectors she’s most bullish on heading into 2025.
https://www.cabotwealth.com/street
Cabot Webinar
3 Under-the-Rader Stocks with HUGE Turnaround Potential
Join gold and turnaround specialist Clif Droke, Chief Analyst of the Cabot Turnaround Letter, for this exclusive live event where he’ll discuss:
- How today’s abundant liquidity environment provides investors with a near perfect set-up for turnaround stocks
- Why small- and mid-cap stocks offer more attractive turnaround opportunities than large caps
- Insights on the post-election market landscape and where it could be go next • Key reasons why gold and silver still offer some great turnaround plays
- His secrets to generating outsized profits, by combining core value investing principles with dynamic momentum trading tactics for optimal results
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 Plus 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 November 14: It’s been a great couple of weeks in the market, with the major indexes lifting nicely since the election and, more important, with leading growth stocks acting very well—while there have been some earnings wobbles, there’s been even more big rallies, with some stocks going into the stratosphere. It’s been a good couple of weeks, and with the evidence bullish, we are too—but we’re also keeping our feet on the ground, trimming some names on the way up and aiming to enter some fresher leaders, ideally on weakness.
Bi-weekly Update November 21: WHAT TO DO NOW: Remain bullish, but again, be sure to keep your feet on the ground. The pullback last week was tedious, and our Two-Second Indicator is looking iffy, but the market’s trends have remained up and growth stocks are still very strong. We sold one-third of our Palatir (PLTR) position earlier this week, booking partial profits in a good winner, and tonight we’re going to average up in Samsara (IOT), buying another 5% stake, which will leave us with around 19% in cash. Details below.
Cabot Top Ten Trader
Weekly Issue November 18: Last week’s pullback in the major indexes was pretty disappointing, but when we took a look around at all the evidence this weekend nothing much had changed on an intermediate-term basis: Most leading stocks are acting fine, the trends are still pointed up for the major indexes and, while it’s been a bit more rotational of late, there are still plenty of fresher titles that are advancing. We’ll be watching everything going forward (including the still-steep uptrend in Treasury rates), but at this point, we remain optimistic. We’ll leave our Market Monitor at a level 8.
This week’s list is chock-full of growth-y names, many of them familiar ones. Our Top Pick is a big, liquid, well-sponsored e-commerce emerging blue chip that just catapulted out of a big base.
Movers & Shakers November 15: After a moonshot among most major indexes following the election and a second Fed rate cut, the market retrenched a bit this week, as the Fed hinted more rate cuts are a coin flip, as Treasury rates picked up again, and as some profit taking set in. The big-cap indexes are off a bit more than 1%, though the broad market and certain growth measures have pulled in more.
Cabot Value Investor
Monthly Issue November 7: The election is over, a winner swiftly declared, and the Fed is set to cut rates again today. All of that is hugely bullish, as evidenced by the market hitting fresh all-time highs on Wednesday. But it’s even bigger news for small-cap stocks, which are historically overdue for a massive run. So today, we add a new small-cap stock whose name virtually everyone knows – and perhaps has indulged in themselves. That addition is part of a sweeping portfolio overhaul in our November issue, which includes two stocks reaching – actually eclipsing – our price targets, and our one true laggard getting the ax after a bad earnings report.
Lots to talk about today. Let’s get right to it.
Weekly Update November 21: Tesla (TSLA) is getting lots of headlines these days, and for good reason.
Their CEO and founder, Elon Musk, was tabbed by President-elect Donald Trump to head up something called the Department of Government Efficiency (along with Vivek Ramaswamy); their stock price is up 57% in the last month; and the company is coming off its first truly encouraging quarterly earnings report in a year. Anyone who invested in TSLA a year ago, five years ago, or 13 years ago, when our Mike Cintolo first recommended the stock in his Cabot Top Ten Trader advisory, has made a LOT of money.
But another company has surpassed Tesla as the biggest EV seller in the world. And today, we add it to the Cabot Value Investor portfolio.
Cabot Stock of the Week
Weekly Issue November 18: In our last issue before the holiday shopping season hopefully kicks off the next leg of the bull market, today we subtract two underperforming overseas positions and add a mid-cap defense stock recommended by Cabot Explorer Chief Analyst Carl Delfeld. We also put a bow on Q3 earnings season (minus this week’s Nvidia report, of course), which was mostly a force for good among the stocks in our portfolio.
Details inside.
Cabot Explorer
Bi-weekly Issue November 21: Europe’s stock market has underperformed the U.S. by the most in almost three decades.
While the S&P 500 index is up about 25% so far this year to record highs, Europe’s benchmark Stoxx 600 is only up 5%. That underperformance in returns is the biggest since 1995, according to Bloomberg. The other side of the coin is that the S&P 500 is now trading at 22.5 times forward earnings and is at a record high 70% premium to the Stoxx 600. The European Union (EU) bloc is the world’s third-largest economy, with a market of 450 million consumers, and controls the world’s second-most-used currency, the euro.
So today, we go to Europe (literally!) to add a new stock to the Explorer portfolio that looks poised to outperform.
Bi-weekly Update November 14: The rally since the election continues as Bitcoin reached $90,000 for the first time. Tesla (TSLA) has climbed more than 40%, and the KBW Nasdaq Bank Index, which tracks shares of some of the nation’s largest lenders, is surging.
Dutch Bros (BROS) shares jumped 36% this week as it beat analysts’ expectations on the top and bottom lines while offering improved guidance for the remainder of 2024. Sea Limited (SE) soared 10.3% as the Singapore-based company reported overall net income that beat estimates at $153.3 million, with a better-than-projected 31% rise in revenue for the September quarter.
Cabot Small-Cap Confidential
Monthly Issue November 7: Today we’re jumping into a small-cap recovery story that appears to be in its early innings. It’s a familiar name, and we’re not the first to jump on it. Bank of America just put out a very bullish note after the company posted a big earnings beat.
But this stock isn’t a consensus buy, far from it. There’s a lot of work to be done before Wall Street jumps on board. That spells opportunity.
I don’t think it’ll be a small-cap stock for long. Because of the crazy week with the election and FOMC meeting we will start with a half-sized position with today’s stock.
Weekly Update November 21: The S&P 600 SmallCap Index raced higher right after the election, gave a little back last week, found support at the previous all-time high early this week, and is now rallying again.
I think the small-cap story is starting to get out there and driving a wave of interest from investors who haven’t given small caps much thought for a few years. There is so much potential to rally from here that it can be a little hard not to get too bullish.
Cabot Dividend Investor
Monthly Issue November 13: The election of Donald Trump has altered the trajectory of the economy and the market.
Investors perceive his election will deliver stronger economic growth, primarily through deregulation and tax cuts. Although interest rates spiked higher on the expectation of a stronger economy, the market views the revised prognosis as overwhelmingly bullish, so far.
The new administration will employ drastically different policies that will have a significant effect on different sectors and can’t be ignored. The most obvious sector beneficiary of the new administration is energy.
A huge beneficiary will be natural gas exports. The U.S. has recently become the world’s second-largest exporter of natural gas. Exporters ideally sell cheap American gas overseas where it fetches a much higher price. More production and cheaper domestic prices are ideal for exporters. At the same time, the new administration is likely to encourage as much natural gas exporting as possible.
In this issue, I highlight a company that runs the largest liquid natural gas (LNG) export facility in the country. It is a subsidiary of existing portfolio position Cheniere Energy (LNG), which is up 15% since the election. It pays a huge income and still sells at a reasonable price.
Weekly Update November 20: After a huge post-election rally, the market leveled off.
The S&P 500 soared 5% in the three days after the election. Since then, it hasn’t pulled back with any significance, but it has stopped going up.
Cabot Early Opportunities
Monthly Issue November 22: In the November Issue of Cabot Early Opportunities, we jump into a crazy semiconductor growth story, an electrification name and an international travel story. We also kick the tires on a new company focused on acquiring outdoorsy brands as well as another playing in the healthy and alternative food space.
As always, there should be something for everyone!
Cabot Profit Booster
Weekly Issue November 19: Before we dive into this week’s covered call idea we are going to first move on from our position in Credo (CRDO) as the stock finished below the 40 strike price on Friday, which means the call we sold expired worthless, leaving us with our stock position today which is now trading back above 40 (great!).
Cabot Income Advisor
Monthly Issue October 22: This country has a massive shortage of housing.
It is estimated that the current demand for homes exceeds the national supply by a whopping 4.5 million. The shortfall has caused the median U.S. home price to double since 2011 and soar a staggering 40% just since the pandemic. In many areas, prices have increased a lot more.
High prices combined with the highest mortgage rates in decades have made housing unaffordable. Zillow estimates that only 15.1% of current non-homeowner households can afford a typical mortgage.
But there is reason to believe the housing problems will get a lot better in the years ahead.
Mortgage rates are falling. The average U.S. 30-year fixed mortgage rate has fallen to 6.6% from 7.2% this past May and 7.8% a year ago. And rates are likely to continue to trend lower from multi-decade highs in the years ahead. Prices are coming down too. The average U.S. home price has declined about 7% since the beginning of last year.
While the situation is likely to improve, the supply/demand imbalance will likely remain for several years. That’s a problem for the housing market and economy to work through. But it’s good news for homebuilders. New homes should be in high demand for years to come, and sales should increase with the improving conditions.
In this issue, I highlight one of the best homebuilders on the market. The stock has been a stellar performer as investors realize the opportunity. But it is still reasonably valued and has momentum. It should provide a covered call opportunity soon.
Weekly Update November 19: The market leveled off last week after the huge election surge. Stocks are trying to find a more sober post-election footing.
The S&P 500 was down very slightly last week after soaring 5% in the three days following the election. The initial reaction to the Trump victory was higher growth expectations and a surge in cyclical stocks countered by a spike in interest rates. We’ll see if those trends continue after the market fully digests the election.
Cabot Turnaround Letter
Monthly Issue October 30: For much of the last four years, the “friendly skies” have been anything but for the airline industry and its customers. The restrictive measures of the Covid era put the entire $1.2 trillion air travel industry into a tailspin, causing massive financial losses and layoffs for the major carriers, not to mention major headaches for travelers.
The problems began in March 2020 and continued through that year, but by the start of 2021, industry-wide losses totaled over $35 billion, with no fewer than 64 airlines around the world ceasing operations. By the time Covid restrictions were lifted in 2023 (in the words of a contemporary CNN report), “A handful [of airlines] have revived after announcing bankruptcy, or changed names, but the vast majority are gone for good.”
Weekly Update November 22: In today’s note, we discuss a number of earnings results and new developments for several of our portfolio positions, including Alcoa (AA), Brookfield Wealth Solutions (BNT), Intel (INTC) and Starbucks (SBUX).
Cabot Cannabis Investor
Monthly Issue October 30: Given that the majority of Americans on both the left and the right favor cannabis legalization, it’s no surprise that marijuana has emerged as a significant campaign issue.
Therefore, it makes sense to think about election outcome scenarios and what they mean for cannabis investors.
Big picture, no matter what happens in the presidential election, cannabis wins. That’s because both candidates support major cannabis reform in one way or another. But obviously, some outcomes are better than others. Here are the three main scenarios, from best to worst.
Monthly Update November 6: The cannabis sector is taking a severe body blow because of election outcomes.
The big negative: Florida voters rejected Amendment 3, which would have legalized recreational use. Voters in North Dakota and South Dakota also rejected cannabis legalization.
Cabot Money Club
Monthly Magazine November: Your finances touch almost every aspect of your life in some way or another, and that can make tackling them feel overwhelming. This month, we’ll lay out a monthly “to-do” list that can help you save money on taxes, set aside more money, and plan for the future. Plus, the monthly breakdown will help make sure you won’t miss financial deadlines that you never saw coming.
Stock of the Month November 14: 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 Tyler: Hi Tyler. In September you recommended Klaviyo (KVYO) and today’s report showed a gain of about 1 percent since (the stock was added to the Cabot Early Opportunities portfolio). I am curious as to your thoughts about this one going forward. It seems to have a difficult time breaking out. I am holding on to it now, but have been tempted to sell out of it and move the money into one of the newer recommendations or add to ones I have in the portfolio.
Tyler: I share your feelings toward KVYO the stock. But I think I’m willing to be somewhat patient with it as a company because of the research I do into these marketing technology platforms. They just provide such a critical function for businesses as they try to reach potential customers. For Klaviyo, the tie-in to Shopify and the rapid pace of Klaviyo’s growth, with profits, is also pretty attractive from my perspective. And, it’s “software,” which is doing relatively well so there’s that benefit as well.I would never try to talk somebody into holding something they are a little bored with. But in my view it’s worth being a little more patient with KVYO. I don’t love the weakness since earnings, but on the other hand, it’s not broken by any stretch.That’s just my 2 cents. I would feel differently very quickly if the stock sold off back toward 32. And if it went below that, I’d probably ditch it. Which, of course, would make me feel a little silly for not having sold here near 35.